Sunday, 9 December 2012

Fake Currency in Kerala



An alleged aide of underworld don Dawood Ibrahim, Mannuparambil Abdul Majeed, 53, reported to be behind the circulation of Fake Indian Currency Notes (FICN) from Gulf countries to Kerala, was detained in Dubai recently. Officials said a team of the National Investigation Agency (NIA) is going to Dubai on December 4 to bring him to India.
Sources said Majeed was detained in Dubai based on a red corner notice issued by Interpol on NIA’s request. He is alleged to be linked to the seizure of fake notes with a face value of Rs 72.5 lakh in 2008. The notes were seized from one Muhammad Alshad of Thrissur, who had just returned from the UAE.
In 2011, the NIA took over the case after officials suspected terror links. According to NIA, Majeed, originally from Malappuram, has been living in Dubai for the last few years. “From the interrogation of suspects, we linked the circulation of FICN in Kerala to Majeed. He has also been facilitating money to terror groups trying to make inroads into Kerala,” said a top NIA official. The fake notes are reported to have originated from Quetta in Pakistan.

(Discussion Opened for the topic - "How do the fake currency affect Indian Economy")

9 comments:

  1. Some of the effects that counterfeit money has on society are:

    1.Reduction in the value of real money
    2.Increase in prices (inflation) due to more money getting circulated in the economy - an unauthorized artificial increase in the money supply
    3.Decrease in the acceptability (satisfactoriness) of money - payees may demand electronic transfers of real money or payment in another currency (or even payment in a precious metal such as gold)
    Companies are not reimbursed for counterfeits. This forces them to increase prices of commodities
    At the same time, in countries where paper money is a small fraction of the total money in circulation, the macroeconomic effects of counterfeiting of currency may not be significant. The microeconomic effects, such as confidence in currency, however, may be large.

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