Hyderabad police have arrested four people and seized counterfeit ₹500 notes with a reported face value of ₹6.78 crore during an operation targeting an alleged fake currency manufacturing network on the outskirts of the city.
The action was carried out jointly by Abdullapurmet police and the Shadnagar Special Operations Team of the Future City police. Investigators intercepted a car near Ramoji Film City on National Highway 65 on November 1, leading to the arrest of four occupants.
The accused have been identified as Madupoju Karnakar, Chinnolla Manikya Reddy, Cherukupelly Rathnakar Reddy and Karanam Ajay Kumar.
During questioning, police reportedly uncovered information about an alleged counterfeit currency production facility operating from a rented house in Kuntloor. The investigation is now focused on identifying the people involved, examining the seized equipment and tracing the network's financial activities.
Police Recover Counterfeit Notes Worth ₹6.78 Crore
Following the arrests, police teams searched the rented premises in Kuntloor, where they allegedly discovered equipment being used to manufacture counterfeit ₹500 notes.
The seized items reportedly included a laptop, high-end printers, currency-cutting machinery and other materials connected with the alleged operation.
The counterfeit notes recovered from the premises had a combined face value of ₹6.78 crore, making the seizure a significant development in the region's efforts against fake currency networks.
Investigators and technical personnel are examining the seized electronic devices and equipment to establish how the alleged facility operated, where its materials came from and how long the operation may have been active.
Police are also expected to examine whether the counterfeit notes were supplied to buyers or circulated through intermediaries in neighbouring districts.
Accused Allegedly Impersonated Police Personnel
Investigators have alleged that the group used fake police identity cards and other imitation equipment to intimidate people and make its activities appear like genuine law enforcement operations.
The seized or reported items associated with this alleged impersonation included dummy pistols and walkie-talkies.
According to the investigation, the group initially attempted to attract buyers by offering unusually favourable exchange arrangements involving counterfeit currency. Potential customers were allegedly promised ₹3 lakh to ₹4 lakh in fake notes in exchange for every ₹1 lakh in genuine currency.
The strategy reportedly failed to generate the expected results, prompting the group to adopt another approach involving deception and intimidation.
Fake Raids Allegedly Used to Take Genuine Cash
Police say the accused later began targeting people who showed interest in obtaining counterfeit currency.
The alleged method involved arranging meetings with prospective buyers and displaying bundles of genuine cash to make the transaction appear credible.
Once the buyers produced their own money, other members of the group allegedly arrived pretending to be police officers. They reportedly displayed fake identification cards, carried imitation weapons and used walkie-talkies to create the impression of an official raid.
The alleged objective was to frighten the prospective buyers by accusing them of participating in illegal currency transactions. During the confusion, the group allegedly took possession of the genuine cash and left the location.
Police have reportedly linked the syndicate to two such incidents. In these cases, the accused allegedly obtained ₹2 lakh and ₹3 lakh respectively from individuals who were intimidated during the staged encounters.
These allegations are part of the ongoing investigation and will be subject to further legal proceedings.
Financial Trail and Wider Network Under Investigation
Following the arrests and seizure, investigators are examining financial transactions, communication records and possible links to prospective buyers across neighbouring districts.
The police investigation is expected to establish whether additional individuals helped operate the alleged facility, arrange transactions or distribute counterfeit notes.
Authorities are also analysing the seized digital equipment to identify potential evidence relating to the production and movement of fake currency.
The case highlights the financial and legal risks associated with counterfeit currency networks, including schemes that use impersonation and intimidation to target people.
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The investigation remains ongoing as police work to establish the full scale of the alleged operation and identify any other people connected with the racket.