Fake currency racket busted

HYDERABAD, MAR 3: The Nizamabad district police claim that they have busted a fake currency racket involving circulation of Rs 500 notes ...

HYDERABAD, MAR 3: The Nizamabad district police claim that they have busted a fake currency racket involving circulation of Rs 500 notes and arrested the leader and several of his associates.

The main accused, Lakshmirangaiah alias Babu of Kurnool, confessed on Monday to have printed Rs 500 notes worth crores of rupees. Apart from circulating these in the city, these notes were sent to Medak and Nizamabad, Madhya Pradesh, Orissa, Bangalore, Chennai and Mumbai.

Giving details, Nizamabad SP C V Anand said Babu, in association with P Lakshmi Reddy of Nandyal and Prasad Rao of Nellore, printed fake Rs 500 notes at Kurnool and distributed them among his agents, including one Vittal of Pitlam, G Balaji of Bhiknoor, K V Prasad of Hyderabad and Santosh Reddy of Siddipet.

According to Anand, the police achieved a breakthrough in the case when they arrested Vittal at his home on Monday. On questioning, Vittal disclosed that Babu, Lakshmi Reddy and Prasad Rao were the major operators in the racket and he was theiragent. He admitted to circulating fake notes worth Rs 30 lakh in the city alone in the last two months.

After Vittal8217;s confession, a special team led by Bhiknoor Inspector Sai Krishna raided the house of Babu at Kurnool the same evening and seized fake currency, a printing machine and some chemicals. Babu and Prasad Rao, who was also present in the house, were taken into custody, the SP said.

On being questioned, Babu told officials that Lakshmi Reddy had been to Bangalore to purchase a new machine, including computers and scanners. The police, along with Babu, went to Bangalore the same night and apprehended Reddy at his house. Latest computer equipment such as a colour printer, floppies, chemicals and other accessories used in producing fake notes were recovered from Reddy8217;s possession.

All the accused were brought to Kamareddy today for further questioning.

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Meanwhile, the Nizamabad police on Monday raided a customs notified shop located at Abids in the city and arrested its owner Hyder who wasinvolved in the racket.

The Nizamabad police had earlier arrested T Narsimha Reddy of Shankarpur village, T Sridhar of Ramayanpet, M Santosh Reddy of Siddipet and A Vijay Bhaskar of Hyderabad for trying to circulate fake Rs 500 notes in the district.

Efforts were on to arrest the remaining agents involved in the racket, Anand said.