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5 Smuggling in India Report 2024-25

Counterfeit Currency : A Silent Security Breach

The circulation and smuggling of Fake Indian Currency Notes (FICN) remain a
persistent national security concern, undermining monetary stability and public
trust. With rapid advances in printing, scanning, and digital replication technolo-
gies, counterfeit notes have become increasingly sophisticated, posing grave risks
to the integrity of India’s financial system. While earlier operations primarily
exposed cross-border smuggling networks, recent DRI investigations revealed a
worrying shift toward domestic, decentralised printing cells. These micro-units,
often operating from innocuous locations using normal printers, are sustained
through the import of security-grade paper, inks, and holograms in multiple
small, inconspicuous consignments. Their operational flexibility allows them to
dismantle and relocate illicit printing setups within hours, making detection and
interdiction efforts more challenging.

Case 4: DRI busts fake currency modules

In February 2025, DRI uncovered a new fake Indian currency operation after
seizing high-quality security paper imported from Hong Kong by declaring it
as A-4 size papers. Investigations led to multiple arrests across Uttar Pradesh,
Karnataka, Rajasthan, Maharashtra, and Haryana, uncovering various print-
ing units. A follow-up operation across 11 locations exposed seven additional
modules, with recoveries including printers, laptops, security papers, and
partially printed notes. Cases were handed over to local police under the
Bharatiya Nyaya Sanhita (BNS), 2023 for further investigation.

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