Fake Indian currency
racket in Nepal’s Terai
K.C. Dipesh Kumar
Centre for the Study of Social Systems, Jawaharlal Nehru University,
New Delhi, India
Purpose –The purpose of this paper is to attempt to analyse the trend of trafcking of fake Indian currency
notes (FICN), which is organised in nature. It accounts the trend of the smuggling of FICN through the route
of Nepal and emerging routes as a consequence of the extension and strength of the criminal gangs.
Design/methodology/approach –The author utilized the governmental and non-governmental reports
besides journalistic reports related to the intention of fake currency trafcking to analyse the ground reality
and vested interests of such crime.
Findings –Though the open border of Nepal with India is exaggerated as the reason behind the
cross-border crimes, such as smuggling of FICN, this paper has falsied the biased perception of labelling the
borderline as a crime zone. It nds an outcome of the FICN smuggling that turns the Indo–Nepal border areas
as a covert battleeld of organised criminal gangs as well as secret agencies of regional powers.
Research limitations/implications –Due to ethical issues and limitations of research works on the
topic, the descriptive analysis that could be carried out was limited.
Practical implications –The negative ndings of the crime are implacable, in keeping in mind before
establishing a good policy related to development and security of Nepal, especially the Terai region.
Social implications –The paper highlights social problems and challenges in the Terai region of Nepal
that enforced the people residing in that area towards the fake currency racket. Hence, it urged to solve the
social problems to curb the nancial crime such as counterfeit notes trafcking in the region.
Originality/value –This study is the latest research describing and disclosing the fact behind fake
currency trafcking and its consequences.
Keywords Conict, Organised crime, Counterfeit, Cross-border crime, Labelled, Transit points
Paper type Research paper
Money counterfeiting is the illegal imitation of money (Allen, 2006). The imitation has either
the intention of monetary prot or to destroy the economy of a particular nation, which is also
related to organised crime, and has vast and strong networks with an effort to challenge the
state. As one of the current booming crime industries of the world, it is creating problems for
the economy of specic nations as well as the global economy. Furthermore, developing and
politically unstable countries whose land is misused by criminal gangs to commit crimes,
including counterfeit notes trafcking, often suffer more. Due to social and economic chaos,
these volatile regions are a haven for organised criminals involved in these specic types of
Nepal has suffered from the incremental increase of activities involving the fake currency
racket, which has become a threat to its peace and prosperity from three different
(1) the land of Nepal is misused by the racket for smuggling fake Indian currency notes
(FICN) towards India;
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Journalof Money Laundering
Vol.20 No. 3, 2017
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