₹6.78 crore fake notes, YouTube tutorials and fake cops: How a Hyderabad gang ran a bizarre currency racket from a rented house

A counterfeit currency racket being run from a rented house on the outskirts of Hyderabad has been busted by Telangana police, with four people arrested and fake ₹500 notes with a face value of ₹6.78 crore seized. The prime accused allegedly learnt how to make counterfeit currency by watching YouTube videos and other social media content, police said.

The racket came to light on November 1 when Abdullapurmet police, along with the Shadnagar Special Operations Team (SOT), intercepted a car near Ramoji Film City on National Highway 65. Police recovered counterfeit ₹500 notes worth ₹8 lakh from the vehicle and arrested all four occupants.

Fake currency printing unit found in rented house

During the investigation, police traced the operation to a rented house in Kuntloor on the outskirts of Hyderabad. A counterfeit currency printing unit was allegedly being run from the house.

Police seized another 134 bundles of fake ₹500 notes from the premises, estimated to be worth around ₹6.70 crore.

The police also recovered printers, scanners, a laptop, a lamination machine and equipment used to cut the currency notes.

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Accused allegedly used YouTube to learn the process

Future City Commissioner of Police Dr Tarun Joshi said the prime accused, identified as Madupoju Karnakar, allegedly learnt the process of manufacturing fake currency by watching YouTube videos and other content on social media.

According to investigators, Karnakar scanned genuine ₹500 notes and used image-editing software, including Photoshop, to modify the images before printing counterfeit versions.

The accused allegedly planned to circulate the fake notes by offering ₹3-4 lakh in counterfeit currency in exchange for every ₹1 lakh in genuine cash. However, when the plan failed to attract buyers, the gang allegedly came up with another way to target prospective customers.

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Gang allegedly posed as police to steal genuine cash

Investigators found that the accused allegedly used genuine currency and fake police identities to gain the confidence of prospective buyers.

They would first show genuine currency to convince customers that the deal was real. They would then allegedly pose as police personnel using fake identity cards, walkie-talkies, imitation pistols and vehicles fitted with fake number plates.

The gang would allegedly threaten the prospective buyers and flee with their genuine money, police said.

The accused allegedly cheated two prospective customers of ₹2 lakh and ₹3 lakh in separate incidents.

The four arrested accused have been identified as Madupoju Karnakar, Chinnolla Manikya Reddy, Cherukupelly Rathnakar Reddy and Karanam Ajay Kumar. Three other accused are absconding, and efforts are underway to trace them.