Rs 10 Note Used to Facilitate Hawala Transactions Worth Crores: Police Busts Intricate Money Laundering Racket in Sagar

Police in Madhya Pradesh’s Sagar district have exposed a sophisticated hawala operation that used torn pieces of ₹10 currency notes as a covert verification method to move crores of rupees without leaving a traditional financial trail. Several suspects have been arrested, and investigators say the network may be part of a much larger money-laundering chain.

How Torn ₹10 Notes Became the Key to the Racket

According to investigators, the operators devised an unconventional system: a single ₹10 note was cut into multiple fragments, each serving as a token exchanged among hawala agents. These matching pieces functioned as proof that a payment had been made, allowing money to be transferred across regions without the physical cash ever changing hands.

Police said the method was specifically designed to avoid detection by financial monitoring systems, enabling the smooth movement of unaccounted funds while keeping beneficiaries anonymous. The simplicity and anonymity of the system made it difficult for authorities to link transactions or identify the individuals behind them.

Arrests, Seizures and Expanding Investigation

Multiple individuals allegedly involved in the hawala network have been taken into custody. During the raids, police seized cut currency notes, digital devices, transaction logs, and communication records believed to have been used to coordinate the illegal transfers.

Investigators are now working to map the broader network, track associated financial channels, and identify assets acquired through the illicit transactions. Authorities expect more arrests as they follow the money trail.