Question : SEIZURE OF COUNTERFEIT CURRENCY

(a) whether counterfeit currency worth Rs.seven lakh has been seized in a raid conducted by the police in Delhi recently;

(b) if so, whether the Government have received any information about circulation of fake currency from other parts of the country;

(c) whether the Government are aware that ISI has set up a full fledged facility to print counterfeit Indian currency notes and supply it through persons condenmed as `savaris`;

(d) if so, the details thereof;

(e) the reaction of the Government in this regard; and

(f) the steps taken by the Government to check the circulation of fake currency ?

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI CH.VIDYASAGAR RAO)
(a)&(b) Delhi Police in a raid conducted on 24th January, 2000 seized, inter-alia, fake currency notes worth Rs.50,000/- from a Pak national at a parking area near Karol Bagh. This eventually led to further seizure of fake currency notes worth Rs.7,69,800/- from him and his other associates.
Similar seizures have been reported from other parts of the country also.
(c)to(e) Intelligence inputs do suggest that the PAK ISI is operating an organised racket for smuggling of fake Indian currency into the country. The disclosures made by the arrested persons also point to the posibility of extensive use of `repeater` passengers travelling between India and Pakistan for this purpose.
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(f) The steps taken in the matter include:

(i) In order to combat counterfeiting, currency notes are now printed with additional security features;

(ii) The Reserve Bank of India issues press releases from time to time to enable the public to distinguish between genuine and fake currency notes;

(iii) The Central Bureau of Investigation has created a Special Unit for exclusive investigation of cases of counterfeit currency;

(iv) The Border Security Force has alerted its forward troops to be more vigilant so as to ensure that fake currency notes are not smuggled into the country; and

(v) A committee has been constituted by the Ministry of Finance for examining cases of counterfeit currency and recommend remedial measure that should be taken by the note printing presses from time to time.