The National Investigation Agency (NIA) has filed a formal chargesheet against two individuals in connection with a cross-border fake Indian currency smuggling racket operating through Madhubani district in Bihar. The chargesheet, submitted on Friday under Sections 61(2), 179, 180, and 3(5) of the Bharatiya Nyaya Sanhita (BNS), 2023, names Bharat Mahaseth and Shiv Kumar Raut alias Mehman. Both accused face charges of trafficking counterfeit currency from Nepal into Indian territory and conspiring to circulate the forged notes as legal tender through local village markets. Federal investigators noted that while the name of an additional suspect, Hira Mahaseth alias Chachi, surfaced during the ongoing probe, the present chargesheet specifically arraigns the two primary accused.
Joint Operation at Duhabi Bazaar Yields 281 Counterfeit Notes
The counterfeit distribution network was uncovered during a coordinated operation conducted on August 2, 2026, at Duhabi Bazaar, situated within the Basopatti police station limits of Madhubani district. Acting on actionable intelligence inputs, joint teams comprising personnel from the Sashastra Seema Bal (SSB), the Bihar Special Task Force (STF), and the local Bihar Police raided the site. The security forces intercepted the suspects and recovered 281 counterfeit Indian currency notes carrying an aggregate face value of 50,150 rupees. The seizure prompted law enforcement agencies to open an inquiry into the originating points of the fake currency and trace the cross-border logistical lines used to smuggle the forged notes across the open frontier with Nepal. Investigators suspect that the syndicate had established local conduits to systematically push the counterfeit notes into routine trade transactions, exploiting small commercial markets across border districts.
Ministry of Home Affairs Transferred Probe to Federal Agency
Following the initial recovery at Duhabi Bazaar, the local police registered a first information report on August 2, 2026, under Case Number 268/2026 at Basopatti police station, naming Hira Mahaseth alias Chachi, Bharat Mahaseth, and Shiv Kumar Raut as accused. Although state police began preliminary inquiries, the transnational nature of the offense and the security implications of currency smuggling along the international border prompted the Union Ministry of Home Affairs to direct the NIA to take over the matter. The federal agency formally re-registered the case on September 9, 2026, launching a broader inquiry to map out the entire supply route, trace the source of the counterfeit notes in Nepal, and determine whether the syndicate functioned as an arm of an established transnational network operating on both sides of the frontier.
Raids Across 12 Madhubani Locations Yield Digital Evidence
Expanding the scope of the probe, the NIA carried out coordinated search operations at 12 locations across Madhubani district on October 8, 2026. The search teams confiscated electronic communication devices, incriminating documents, unaccounted cash, and related materials tied to the suspects. Investigators are currently conducting forensic analyses of the seized digital equipment and physical records to establish communication trails, uncover hidden financial transactions, and identify potential intermediaries who assisted in logistics. While the chargesheet marks a major legal milestone in the prosecution of Bharat Mahaseth and Shiv Kumar Raut, the NIA confirmed that its investigation remains open to identify other collaborators and dismantle the wider cross-border smuggling network.
