The authorities recovered counterfeit currency worth Rs 6.78 crore, along with equipment allegedly used to produce the fake notes. Three other suspects remain at large, and police are continuing efforts to track them down.
The four arrested individuals have been identified as Madupoju Karnakar, Chinnolla Manikya Reddy, Cherukupelli Ratnakar Reddy and Karanam Ajay Kumar.
According to police sources, the breakthrough came on 1 November when officers from Abdullapurmet Police Station, assisted by the Shadnagar Special Operations Team, intercepted a vehicle near Ramoji Film City on National Highway 65.
A search of the vehicle led to the recovery of counterfeit Rs 500 notes worth Rs 8 lakh. All four occupants were arrested at the scene.
During subsequent questioning and investigation, police obtained information about a rented property in the Kuntloor area on the outskirts of Hyderabad. Investigators suspected that the house was being used as a secret manufacturing facility for counterfeit currency.
A raid on the property led to the discovery of a substantial quantity of fake banknotes. Police recovered another 134 bundles of counterfeit Rs 500 notes, estimated to be worth Rs 6.70 crore.
Combined with the currency seized from the vehicle, the total value of the counterfeit notes recovered stands at Rs 6.78 crore.
Investigators also seized a range of equipment believed to have been used in the operation. The items included a colour printing machine, a scanner, a portable computer, a laminating machine and various tools for cutting banknotes.
The seizure suggests that the group had established a relatively organised production facility rather than relying on small-scale, improvised methods.
Future City Police Commissioner Tarun Joshi said the alleged mastermind, Madupoju Karnakar, had learnt the techniques of producing counterfeit currency by watching videos on YouTube and other social media platforms.
He subsequently used that knowledge to begin manufacturing fake notes, eventually setting up the operation in the rented house. Other individuals were allegedly brought into the network to assist with its activities.
According to investigators, the group’s original business model involved offering counterfeit currency to prospective buyers at a substantial discount. It allegedly planned to exchange Rs 3 lakh to Rs 4 lakh in fake notes for every Rs 1 lakh in genuine cash.
However, the proposal failed to attract the level of interest the group had anticipated. Investigators say the suspects then turned to a different method of making money through deception.
According to police, members of the group initially showed prospective customers a quantity of genuine currency to establish credibility. Once they had gained the confidence of potential buyers, they allegedly posed as police officers and threatened them before taking their genuine money.
The group reportedly used fake identity cards, walkie-talkies, imitation firearms and vehicles fitted with counterfeit registration plates to make the impersonation appear convincing.
Police allege that the suspects used this method in two separate incidents, taking Rs 2 lakh from one prospective buyer and Rs 3 lakh from another. The alleged victims were targeted after being approached with offers to purchase counterfeit currency.
The investigation is now focusing on the three suspects who remain at large, as well as the possibility of other people being involved in the network. Police are also examining whether any of the counterfeit notes had already entered circulation and identifying the intended destinations of the seized currency.
The case highlights how online video content can be misused to facilitate criminal activities. While digital platforms provide access to educational material and practical skills, they can also be exploited by individuals seeking to learn techniques for fraud and other illegal operations.
Counterfeit currency poses a serious threat to public confidence in cash transactions. Fake notes can cause financial losses for ordinary consumers, shopkeepers and businesses, particularly when they are accepted unknowingly. The recovery of such a large quantity of suspected counterfeit money is therefore a significant development in the authorities’ efforts to disrupt the network and prevent the circulation of fake currency.
