Crime
From Rs 500 to Rs 10: ISI shifts fake currency strategy, floods India with counterfeit low-value notes
New Delhi, Aug 7: Criminal syndicates, including the network run by Dawood Ibrahim, have long been involved in circulating fake Indian currency notes.
Backed by Pakistan’s Inter-Services Intelligence (ISI), these networks have treated counterfeit currency as one of their most profitable operations for years.
Indian security agencies have now detected a significant shift in the way counterfeit currency is being pushed into the country. Investigators say the circulation of fake Rs 500 notes has declined sharply, pointing to a change in the strategy adopted by the counterfeit currency network.
Earlier, the network primarily focused on counterfeiting Rs 200 and Rs 500 notes. Agencies have now found that the emphasis has shifted to lower denominations, with fake Rs 10, Rs 20 and Rs 50 notes being circulated in large numbers.
The circulation of counterfeit currency not only finances these criminal syndicates but also poses a threat to India’s economic stability. Officials say this is one of the key reasons why Pakistan’s Inter-Services Intelligence (ISI) has continued to facilitate the trade, much of which is allegedly orchestrated through the Dawood Ibrahim syndicate.
An Intelligence Bureau official said there are credible intelligence inputs indicating that Pakistan’s ISI is planning to flood the market with counterfeit currency in lower denominations. According to the official, the strategy is to circulate fake Rs 10, Rs 20 and Rs 50 notes in much larger volumes than before.
“There are multiple reasons behind this newfound strategy. These elements are aware that people are extremely cautious about notes above Rs 100 denomination and will conduct a detailed check before accepting them. However, that is not the case when it comes to smaller denomination notes,” the official said.
People are generally less cautious when handling Rs 10, Rs 20 or Rs 50 notes and rarely stop to check whether they are genuine or counterfeit. That is precisely what these networks are seeking to exploit, the official said.
Officials said the syndicates believe lower denomination counterfeit notes are less likely to attract attention, making them easier to circulate in large numbers without raising suspicion.
Another official said that the period up to April 2027 will be crucial.
The biggest push would be made by these gangs to circulate fake notes of smaller denominations during these months. India plans to roll out polymer or plastic bank notes by 2028. The Reserve Bank of India (RBI) has said that polymer bank notes in the denominations of Rs 10 and 20 will be rolled out in 2028.
While the primary objective of introducing polymer notes is to increase their lifespan to nearly four times that of existing paper currency, they are also expected to offer significantly stronger security features. Officials say the enhanced anti-counterfeiting measures will make the notes far more difficult to replicate.
The plastic substrate allows for advanced security integrations which are impossible on paper. These new notes would have transparent windows, specialised metallic links and micro-optic holograms which would make them extremely difficult to forge.
Before this roll out, it is suspected that the ISI-backed gangs may look to ramp up circulation of counterfeit notes of the smaller denominations in the country.
Officials say that these gangs would focus increasingly on notes of smaller denominations. Once the rollout is complete in 2028, these syndicates would look to target the Rs 50 and 100 notes more compared with the notes of the Rs 500 denomination, the agencies warned.
The RBI has repeatedly issued instructions on how to spot a counterfeit note. The apex bank says that the small denominations may not have a high value, but are used more frequently in daily transactions. This makes them a common target for fraud, and hence citizens must be more careful while dealing with such currency, officials point out.
Business
ED raids 10 locations in Delhi-NCR, Haryana, Punjab in imported liquor tax evasion case

The Directorate of Enforcement (ED) has conducted search and seizure operations at 10 locations across Delhi-NCR, Haryana, and Punjab in connection with a money laundering investigation linked to the alleged illegal procurement and sale of imported foreign liquor through Gurugram-based liquor vend chain ‘The Theka’.
The searches, carried out by the ED’s Gurugram Zonal Office on Tuesday and Wednesday under the PMLA, covered offices and residences of individuals associated with ‘The Theka’, foreign liquor suppliers, transporters, and others allegedly involved in the liquor syndicate.
According to the ED, the investigation stems from FIRs and charge sheets filed by Haryana Police over allegations of illegal sale of imported foreign liquor and misuse of the bond-to-bond transfer mechanism to evade customs duties and state excise taxes.
The case originated from a complaint by Excise Department officials, who seized 3,921 cases and 176 loose bottles of imported foreign liquor allegedly lacking mandatory holograms and Track & Trace strips from ‘The Theka’ on December 9, 2025. Another FIR was also registered against members of the syndicate for alleged involvement in the sale of spurious liquor.
The ED said its probe revealed that the syndicate exploited the bond-to-bond transfer system, which permits movement of imported liquor between states without immediate payment of customs and excise duties. To facilitate the operation, separate companies were established in Haryana and Goa/Maharashtra and requisite customs licences obtained.
While the liquor was officially meant to be transported to bonded warehouses in Goa or Maharashtra, investigators found that consignments were diverted in connivance with transporters and supplied directly to liquor vends in Gurugram. The liquor was then sold as legitimate imported stock, enabling the syndicate to evade customs duties, VAT, cesses, and other taxes.
The agency alleged that after securing a liquor licence for the 2025-27 period, the syndicate procured and sold imported liquor without holograms and Track & Trace strips to increase profits. More than one lakh bottles of imported liquor were procured and illegally sold between June and November 2025.
According to the ED, the operation yielded profits of 20-25 per cent on illegal sales and generated proceeds of crime exceeding Rs 10 crore.
During the searches, officials recovered and seized incriminating documents, digital records relating to the procurement and movement of imported liquor under customs bond arrangements, and cash amounting to Rs 11 lakh.
Further investigation is underway.
Crime
DRI busts hashish smuggling racket in Mumbai, seizes 7.85 kg consignment, one arrested

The Directorate of Revenue Intelligence (DRI), Mumbai Zonal Unit, has busted an international drug smuggling racket involving the concealment of hashish in an international courier shipment originating from New York, United States, and destined for Mumbai, officials said on Wednesday.
Acting on specific intelligence inputs, DRI officers uncovered a sophisticated smuggling operation and seized 7.85 kg of hashish concealed inside a wooden-framed bathroom mirror, officials added.
Based on the intelligence, officers intercepted and examined a suspicious courier consignment at the International Courier Terminal in Mumbai. The package had been declared as a framed bathroom wall mirror.
During a detailed inspection, officers dismantled the wooden cuboidal frame and discovered eight concealed packets hidden within the structure.
Further examination revealed that the packets contained 169 smaller packets filled with a blackish resinous substance of varying weights. The recovered material was subjected to preliminary testing using an NDPS field testing kit and was found to be positive for hashish.
The total gross weight of the seized contraband was 7,850 grams (7.85 kg), making it a significant drug seizure linked to an international supply chain.
The narcotic substance was confiscated under the relevant provisions of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
Following sustained investigations, DRI officials successfully identified and traced the intended recipient of the consignment. The accused was arrested on November 2 under the provisions of the NDPS Act.
Officials said further investigations are underway to uncover the larger network behind the operation, identify other individuals involved, and establish possible domestic and international linkages connected to the smuggling syndicate.
The DRI reiterated its commitment to combating drug trafficking and dismantling organized narcotics networks. The agency said such operations are aligned with the Government of India’s Nasha Mukt Bharat Abhiyaan and its broader objective of creating a drug-free India.
Crime
‘Demanded unnatural sex’: UP labourer strangled to death in Gujarat; co-worker held

A 40-year-old labourer from Uttar Pradesh was allegedly strangled to death by his co-worker following a dispute over a demand for “unnatural sex” at a brick kiln in Gujarat’s Ahmedabad district, police said on Wednesday.
The accused, identified as Bholeram Chauhan, a native of Shahjahanpur district in Uttar Pradesh, was arrested by Dholka Rural police on November 3.
The deceased, Pawan Kumar alias Commander, was from Kasganj district of Uttar Pradesh and had travelled to Gujarat with other labourers to work at the brick kiln.
The incident took place between 9 p.m. and 10 p.m. on November 1 near a canal on the outskirts of Mandanpura village in Dholka taluka.
According to police, the two labourers had left the kiln during dinner, saying they were going to fetch something, but did not return for a long time. The labourers’ supervisor subsequently went looking for them.
While heading towards the canal, he encountered Bholeram coming from the opposite direction. During questioning, the accused allegedly told him that Pawan Kumar had demanded unnatural sex, leading to an argument and a physical altercation between the two.
Bholeram allegedly strangled Pawan Kumar using the belt of his trousers. The supervisor took the accused towards the canal, where Pawan Kumar’s body was found near the boundary of an agricultural field.
He subsequently brought Bholeram back to the brick kiln and informed the owner, who alerted the police. Pawan Kumar had arrived at the brick kiln with other workers on the afternoon of November 1.
The group had spent the afternoon constructing a room for their accommodation. “The workers were preparing to have dinner when Pawan Kumar and Bholeram left the premises,” officials said.
The deceased’s elder brother lodged a complaint at Dholka Rural Police Station on November 2, following which a murder case was registered under Section 103(1) of the Bharatiya Nyaya Sanhita (BNS), 2023.
An official told media, “During questioning on November 3, Bholeram confessed to the crime. He was arrested at 5:30 p.m., and police initiated the process to seek his remand.”
The body was sent to Ahmedabad Civil Hospital for a post-mortem examination. Further investigation is underway.
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