Lucknow, India — The recent spate of jailbreaks in Nepal, unfolding amid political unrest, has sent shockwaves through Indian security circles. Among the hundreds of fugitives are at least 105 inmates tied to Pakistan-backed counterfeit currency rackets, networks long accused of undermining India’s financial system.
For more than a decade, coordinated efforts by Indian and Nepali authorities had crippled much of the fake currency trade. But officials now fear that the prison escapes could revive dormant smuggling routes stretching from Nepal across Uttarakhand to West Bengal, channels once used to flood Indian markets with forged banknotes.
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Two names loom large in the renewed concerns: Naseem Badaragh and Yunus Ansari. Both men have been central figures in counterfeit operations in the region. Ansari, arrested in 2009 with counterfeit notes worth 2.8 million rupees, is believed to have sustained his network even from behind bars.
Indian agencies warn that if these operatives succeed in reorganizing, the consequences could extend well beyond the circulation of fake currency. Counterfeit funds, they argue, have historically doubled as a tool for financing destabilizing activities, including terrorism.
“Counterfeit currency is not merely an economic crime, it has been deployed as a strategic weapon,” said a financial crime expert. “When seasoned traffickers resurface, the threat is not just fake notes in circulation, it is the larger intent behind them, which can destabilize markets and fuel extremist networks.”
With Nepal’s fragile political environment providing cover for escapees, Indian intelligence has stepped up surveillance along porous border stretches. Yet analysts caution that fugitives may already be reconnecting with underground operatives, reactivating networks that once linked Nepal’s Terai region with hubs deep inside eastern India.