Fake Currency Racket Busted in Gorakhpur: Printers, Security Threads and Counterfeit Notes Seized

In a major crackdown on organised financial crime, Uttar Pradesh Police have exposed a fake currency printing racket operating out of Gorakhpur’s Padri Bazar area and arrested five individuals allegedly involved in manufacturing counterfeit Indian currency.

Authorities recovered a range of printing equipment, fake notes, security-thread materials, and digital devices used in the production of counterfeit currency during a coordinated raid.

Secret Printing Unit Operating from Residential Area

According to police officials, the racket was being run from a rented and shuttered shop in Saraswatipuram Colony. Investigators said the accused had set up a fully functional setup equipped with printers, computers, specialised paper, ink, and other tools used to replicate Indian currency notes.

During the raid, police seized counterfeit ₹500 notes, a fake ₹100 note, printed sheets resembling currency, images of Mahatma Gandhi used for note design, and multiple electronic devices including CPUs, monitors, and printers.

Victims of ‘Chemical Note’ Scam Turned Offenders

Investigators revealed that the accused initially fell victim to a so-called “chemical note” fraud linked to Bihar. In this scam, fraudsters allegedly convinced them that blackened paper sheets could be converted into real currency using a special chemical treatment.

Police said the group collectively paid around ₹10 lakh to the fraudsters and received bundles of black-coloured paper shaped like ₹500 notes, reportedly worth ₹40 lakh in appearance. However, no chemical solution was ever provided, and the promised conversion never occurred.

After suffering financial losses, the accused allegedly decided to replicate the process and began printing counterfeit currency themselves using locally arranged equipment.

Attempt to Circulate Fake Notes in Local Markets

Officials stated that the group allegedly attempted to introduce counterfeit currency into circulation by offering an exchange rate of four fake ₹500 notes for one genuine note in local markets.

The operation was uncovered after intelligence inputs were received by Gulriha police, prompting a coordinated raid involving the Special Operations Group (SOG) and surveillance teams.

Five Arrested, Including Professionals with Technical Skills

Police identified the arrested individuals as Karan Singh, Mohit Kumar, Vishal Sharma, Ashish Sharma, and Akash Singh. While four are from Gorakhpur, one is from Kushinagar district.

Investigators noted that some members of the group had technical or professional backgrounds. One accused is reportedly an advocate, while another operates a medical store. Others had prior experience working with printing presses, which allegedly helped them produce counterfeit notes with greater precision.

Inter-State Links Under Investigation

Authorities believe the racket may have connections beyond Uttar Pradesh. During interrogation, names of two individuals from Bihar have emerged, and efforts are underway to trace their involvement and possible supply networks.

Police are also analysing mobile data, financial transactions, and digital evidence to identify buyers, suppliers, and other members of the suspected distribution chain.

Rising Sophistication in Counterfeit Currency Operations

Security experts note that counterfeit currency networks are becoming increasingly advanced due to access to high-resolution printers, digital editing tools, and specialised printing materials.

Investigators are now assessing whether the accused had already managed to circulate fake currency in nearby markets before the raid. Further arrests are expected as the investigation expands.