An alert delivery executive has helped Gudiyatham police in Vellore district bust an alleged counterfeit currency racket, leading to the arrest of five people and the seizure of fake currency worth approximately ₹1.5 lakh. The investigation has reportedly uncovered links to West Bengal, with counterfeit ₹500 notes allegedly being brought into Tamil Nadu and circulated through small businesses and roadside vendors, particularly during night-time transactions, as reported in Organiser.
The racket came to light after a delivery executive received two crisp ₹500 notes while delivering a parcel to a customer. Suspecting that the notes were counterfeit because of their unusual texture, he approached Gudiyatham Town Police Station and alerted the personnel instead of confronting the recipient.
Following the complaint, Vellore Zone DIG Mahesh reportedly constituted a special team to investigate the matter. Vellore SP Sivaraman and DSP Suresh led the operation, which involved gathering intelligence and verifying the information received.
Five Arrested, Counterfeit Notes Seized
The police initially raided a hotel owned by Rafiq Ahmed and reportedly recovered bundles of counterfeit ₹500 notes with a face value of ₹50,000.
During questioning, Rafiq allegedly denied involvement in the racket but reportedly told investigators that Zubair Ahmed, a resident of Bharathiyar Street in Thangam Nagar, Gudiyatham, had supplied him with the counterfeit notes.
The investigation subsequently led to further arrests, taking the total number of accused to five. Police reportedly recovered counterfeit currency worth ₹20,000 from Zubair.
Another accused, identified as Babu, was allegedly found to be connected to the supply network. Police reportedly recovered counterfeit notes worth ₹30,000 from him.
West Bengal Links and Alleged Distribution Network
According to sources, Babu had previously been imprisoned around ten years ago in connection with counterfeit currency cases in West Bengal. He was reportedly convicted by the West Bengal police and subsequently released.
During his imprisonment, he allegedly established contacts with members of a counterfeit currency network. After his release, he is suspected to have begun transporting fake currency into Tamil Nadu and supplying it to operators in Gudiyatham, Pernampet, Ambur and other areas along the state borders.
The counterfeit notes were allegedly circulated through small vendors, hotels and roadside kiosks. The gang reportedly targeted night-time transactions, when customers were less likely to examine the notes carefully before accepting them.
Investigators are now looking into the possible interstate supply chain and the extent of the counterfeit currency’s circulation.
Hindu Munnani Raises Questions over Wider Network
Hindu Munnani leader Mahesh has reportedly raised several questions about the alleged network and the possibility that its operations extended beyond Gudiyatham.
He questioned how large quantities of counterfeit currency were transported into Tamil Nadu, whether the notes were brought by trains or cars, and who supplied them to Babu in West Bengal.
He also raised concerns about whether the counterfeit notes had reached Chennai, Ranipet and Tirupattur, apart from the Vellore region.
Further questions have been raised about whether the gang used small merchants and petrol bunks to circulate counterfeit notes through unsuspecting customers.
The public has been advised to exercise caution while accepting ₹500 notes during transactions at banks, shops, bus and railway counters and other establishments, and to check their authenticity.
Previous Counterfeit Currency Manufacturing Attempt in Gudiyatham
This is not the first counterfeit currency-related case reported from Gudiyatham this year.
In September 2026, police arrested six people after uncovering an alleged attempt to manufacture counterfeit currency using chemicals.
Acting on a tip-off, a police team searched the house of K. Saravanan, 47, in Jeeva Nagar, Gudiyatham. They reportedly recovered chemicals, ink, dyes and bundles of paper stored in gunny bags, which were suspected to have been intended for manufacturing fake currency.
Previous Counterfeit Currency Seizures Across Tamil Nadu
Tamil Nadu has witnessed several counterfeit currency seizures and alleged interstate network busts in recent years.
15 July 2026: A special team from Triplicane Police Station raided a guest house and seized counterfeit Indian currency with a face value of ₹22.21 lakh, along with foreign currency and mobile phones. Police reportedly recovered another ₹7,500 in counterfeit notes the following day. Tours and travel operator Shafeeq Rahman, 37, and others were arrested.
October 2026: ₹1.86 lakh counterfeit currency seizure: Police seized 372 counterfeit ₹500 notes, along with other fake currency, collectively worth ₹1.86 lakh. Five accused, identified as Akhtar Parvesh, 21, Aabil, 20, Yayu Lias, 19, Shahid, 19, and Mohammed Irfan, were arrested and remanded to judicial custody.
September 2026: A joint police operation reportedly busted an alleged interstate counterfeit currency network operating between Tamil Nadu, Karnataka and Telangana.
January 2023: Tamil Nadu Crime Branch police arrested Home Guard V. Rajeswaran from Morpannai near Tirupalaikudi in Ramanathapuram district. Police seized counterfeit ₹500 notes worth ₹1,33,500 from him.
June 2018: Police uncovered an alleged counterfeit currency printing unit in Coimbatore, seizing 6,000 fake notes with a face value of ₹1 crore and arresting one person.
August 2015: Police arrested six members of an alleged smuggling gang, including a key suspect identified as Muneez alias Murugan, after counterfeit Indian currency notes reportedly smuggled from Sri Lanka were detected at the State Bank of India’s Keezhakarai branch.
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