The biggest problem in such cases is the dismal conviction rate, says Vicky Nanjappa
The proposal to amend the Unlawful Activities (Prevention) Act for cases involving counterfeit currency has been pending for a while.
The latest proposal seeks to make counterfeiting of currency a terror offence, to curb this threat that has the potential to shake up the Indian economy.
In India, not all cases of counterfeiting are directly linked to terror operations as many local gangs undertake such operations on a smaller scale.
According to Intelligence Bureau officials, the counterfeiting racket is a considerable one which has shifted its epicentre from Pakistan to Bangladesh. A large number of infiltrators and easy access into India makes Bangladesh a desirable location.
A counterfeiting offence is punishable under Section 476 of the Indian Penal Code and the offender can face imprisonment for seven years or more.
Counterfeiting is also a non cognisable/non-bailable offence that can be tried by a magistrate of the first class.
On an average, most Indian cities register at least 15 cases of counterfeiting every month but the conviction rate is a meager 10 per cent.
The biggest problem in such cases is the dismal conviction rate, says a deputy commissioner of police in Bangalore.
In most cases, the police are unable to establish the trail that led to the crime. When a person is arrested with counterfeit currency, he claims during the trial that the currency landed into his possession without his knowledge. It is very difficult for the prosecution to establish the offence as the defendant claims to be just a gullible citizen.
But the new amendment, which makes counterfeiting a terror offence, may act as a deterrent for local gangs. They will not want to be classified as terrorists if found with fake currency.
The conviction rate may also increase as the onus to prove his innocence will be on the accused.
But what happens to an innocent man who is duped into accepting fake currency and is then arrested for it?
A stronger law will make the common man more alert about the dangers of possessing fake currency, believe the police.
It is important to check each and every currency note as this menace can be eradicated only with the participation of citizens. A higher level of awareness about the issue will also prompt people to report cases of fake currency immediately. Many such cases go unreported and fake notes remain in circulation for a long time, making the matter tougher for investigators.
According to sources, it is crucial to monitor currency notes of Rs 500 and Rs 1,000 denominations as these are the most counterfeited.
The amendment will also help book Maoist ultras under charges of terrorism. In Andhra Pradesh, Maoists and their sympathisers have been trying to raise funds by circulating fake currency.
After the new amendment comes through, Maoist elements would be charged with an act of terrorism if they are found to possess/manufacture/circulate fake currency.
Counterfeiting, feels the government, plays a major role in funding terror operations.
