Lucknow: The Uttar Pradesh Anti-Terrorist Squad (ATS) has uncovered an alleged counterfeit currency network suspected of using the Nepal route to circulate fake Indian currency across several states. Two men, identified as Azim Khan and Raja alias Samirul, have been arrested from Ganjdundwara police station area of Kasganj district. Investigators recovered counterfeit notes with a face value of ₹1 lakh from their possession.
According to the investigation, the notes carried high-security features and their alleged Pakistan connection has emerged as a key aspect of the case. Authorities are examining whether the counterfeit currency was being brought into India through Nepal before being distributed through a wider network.
The seriousness of the case has prompted preparations for action under the Unlawful Activities (Prevention) Act (UAPA). Investigators are also examining whether the network had links with organised criminal or terror-related groups operating across the border.
Mobile chats reveal wider network
The arrested suspects are residents of Ganeshpur village under Ganjdundwara police station in Kasganj. During questioning, investigators allegedly recovered information from their mobile phones and chat records that points to a network operating across Uttar Pradesh, Delhi and several other states.
According to preliminary findings, the alleged network is active in around 10 states. Investigators are now examining the identities of people who allegedly received counterfeit currency from the arrested suspects and determining the extent of the distribution chain.
The role of Samirul’s elder brother, Zamirul, has also come under scrutiny. Investigators reportedly found that Zamirul had previously been arrested twice in connection with counterfeit currency cases. He was later released on bail but allegedly became involved in the same activity again.
Police and security agencies are now examining whether the family had established contacts with other members of the wider counterfeit currency network.
Pakistan connection under investigation
The alleged Pakistan link has emerged as one of the most significant aspects of the investigation. According to inputs being examined by the agencies, counterfeit currency is allegedly supplied from Pakistan through intermediaries using the Nepal route.
Investigators suspect that smugglers may receive counterfeit Indian currency from Pakistan in exchange for Indian currency at a multiple rate. The fake notes are then allegedly transported into India through Nepal and distributed among contacts in different states.
The recovered notes are being examined for their security features, printing characteristics and possible source. Investigators are also attempting to establish whether the currency seized from the accused forms part of a larger consignment.
ATS examining supply chain and financial trail
The ATS is now focusing on the complete supply chain, from the alleged source of the counterfeit notes to their final distribution points. Mobile phones and chat records are expected to provide information about contacts, transactions, delivery arrangements and other members of the network.
Investigators are also examining financial transactions to determine how payments were made and whether the accused used bank accounts, cash couriers or other channels to settle transactions.
The agency is expected to question the accused further after securing their remand. The objective will be to identify suppliers, couriers, distributors and other individuals allegedly involved in the network.
Case could be transferred to NIA
Given the alleged cross-border connection, the involvement of counterfeit currency and the possibility of links with activities affecting national security, authorities are considering stringent legal action under the UAPA.
The arrested accused are expected to be taken on remand for detailed interrogation. Investigators will seek information about the alleged Pakistan-based handlers, the Nepal route, distribution channels and the wider network operating across multiple states.
Officials are also examining whether the case meets the criteria for transfer to the National Investigation Agency (NIA). Such a step would depend on the findings of the ongoing investigation and the evidence collected against the suspected network.
The case has raised concerns over the use of Nepal as a possible transit route for counterfeit currency entering India. Security agencies are now working to identify the remaining members of the alleged network and determine whether the seized ₹1 lakh in counterfeit notes was part of a much larger consignment.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
