Telangana Police have arrested a man for allegedly cheating a resident of ₹13 lakh in a fake currency fraud case by using a traditional “black paper to currency note” trick. The accused allegedly convinced people that specially prepared black paper sheets could be transformed into genuine ₹500 currency notes after being treated with a chemical solution.
The accused, identified as Pathipati Prem Chandu, was arrested by Aswaraopet police in Kothagudem district. Police said he allegedly targeted innocent people by promising to multiply their money through a fake currency-making process and collected large sums of money from victims.
According to police, the case came to light after a complaint from Aswaraopet resident Madhu Babu, who alleged that he was cheated of ₹13 lakh by the accused. During the investigation, the accused allegedly admitted to taking money from the victim on the pretext of arranging materials required to prepare fake currency notes.
Police officials said Prem Chandu first collected ₹11 lakh from the victim for providing black paper sheets cut in the size and shape of ₹500 currency notes. Later, he allegedly demanded an additional ₹2 lakh claiming that the amount was required to purchase special chemicals that would convert the black sheets into currency notes.
Investigators said the accused used a chemical demonstration to create the impression that the black paper could be changed into real currency. Police suspect that the demonstration was part of a planned fraud strategy designed to gain the trust of victims and extract money from them.
During the investigation, police recovered 20,000 black paper sheets cut in the size of ₹500 notes. The recovered sheets were packed into 20 bundles. Two bottles containing chemical solution allegedly used during the demonstration were also seized from the accused’s possession.
Police have registered a case against Prem Chandu under relevant sections of law and further investigation is underway to identify whether he cheated more people using the same method. Authorities are also examining the financial transactions linked to the accused to trace the movement of the money collected through the alleged fraud.
Officials said the accused has a previous criminal history and had earlier been arrested in cases related to counterfeit currency, motorcycle theft and other offences. The previous cases were registered at Bachupally, Ramachandrapuram and Kukatpally police stations in Hyderabad, according to police.
The arrest has once again highlighted the prevalence of fake currency-related frauds, where criminals use misleading demonstrations and false claims to target people looking for quick financial gains. Police officials warned citizens to remain cautious against schemes that promise unrealistic returns or claim to create money through chemicals, machines or secret methods.
Cyber and financial crime experts said fraudsters often use psychological manipulation techniques to convince victims. They first build confidence through small demonstrations or fake success stories and later demand larger amounts of money under different excuses. Experts advised people not to trust anyone claiming that currency can be generated, doubled or transformed through chemical processes.
Police have appealed to citizens to immediately report suspicious activities and verify any unusual financial claims before making payments. They also advised people to avoid sharing personal financial details or transferring money to unknown individuals promising extraordinary profits.
The investigation into the case is continuing, and police are working to determine whether the accused acted alone or was part of a larger network involved in similar fake currency frauds.
