New Delhi: The Central Bureau of Investigation questioned former Department of Economic Affairs Secretary Arvind Mayaram on April 7, 2026, regarding corruption allegations in De La Rue International’s exclusive colour shift security thread contract for Indian currency notes.
FIR (Jan 2023) stems from 2017 DEA complaint revealing Finance Minister’s July 17, 2004 authorization for RBI-De La Rue 5-year exclusivity agreement (signed Sep 4, 2004). Contract awarded despite De La Rue lacking colour shift thread patent during 2002 presentation, 2004 selection.
RBI (Apr 2006), Security Printing & Minting Corporation (Sep 2007) flagged issues yet contract extended repeatedly till Dec 31, 2015. No termination clause existed; DEA failed patent verification exposing national security vulnerability.
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Mayaram’s 2013 Three-Year Extension Approval
Mayaram informed May 10, 2013 of expired contract; approved three-year extension June 23, 2013 as DEA Secretary. CBI alleges criminal conspiracy with unknown Finance Ministry, RBI officials favoring UK supplier.
Exclusivity prevented competitive bidding, alternative security feature development. Colour shift thread critical for counterfeit deterrence; single supplier dependency created national security risk absent contractual safeguards.
CBI’s 2017-2023 investigation confirmed procedural irregularities, missing due diligence, unauthorized extensions. DEA complaint triggered scrutiny of decade-long preferential treatment despite technical ineligibility.
RBI-Finance Ministry Accountability
Unnamed senior officials implicated across RBI currency management, Finance Ministry procurement hierarchies. Mayaram’s questioning represents highest-level accountability in decade-old currency security contract controversy.
Currency note security feature monopoly absent patent validation, termination rights threatens ₹20 lakh crore annual note circulation integrity. CBI probe examines potential foreign supplier influence.
Contract Extension Timeline
- 2004: 5-year exclusivity signed
- 2006-07: RBI/SPMC reports flag issues
- 2012: Extensions continue
- 2013: Mayaram approves final 3-year term
- 2015: Contract expires
Investigation spans DEA, RBI, SPMC, international supplier. Mayaram’s examination critical establishing decision-making chain, communication records, potential undue influence during extension approvals.
Currency Note Integrity at Stake
Colour shift security thread represents primary counterfeit deterrent. Single supplier dependency absent competitive pressure risks technological stagnation, vulnerability exploitation by sophisticated f counterfeiters.
Case exposes systemic flaws: absent patent verification, termination clause omission, repeated unauthorized extensions. Sets precedent for CBI scrutiny of high-value government contracts lacking competitive safeguards.
Mayaram questioning represents escalation phase. Document seizures, witness statements, international cooperation likely target full conspiracy mapping, financial trails, decision documentation reconstruction.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
