NIA arrests PNB manager in ₹17.29 crore fake currency case; Nepal link under probe

The National Investigation Agency (NIA) has arrested Punjab National Bank (PNB) manager Amit Kumar in connection with the recovery of counterfeit Indian currency with a face value of ₹17.29 crore from a PNB currency chest in Saharanpur, Uttar Pradesh. The arrest has widened an investigation that began after a relatively small cash discrepancy exposed what authorities suspect could be a larger scheme involving the replacement and movement of genuine currency.

Kumar, who was serving as a joint custodian of the currency chest at the relevant time, was arrested after remaining absconding following the registration of the case. Multiple reports place his arrest on September 7, with the accused subsequently being produced before a special NIA court for transit remand.

The case is now being investigated by the NIA after the agency took it over and re-registered it on September 3. The central agency is examining not only how the counterfeit notes came to be stored inside a formal banking facility but also their possible source, movement and circulation.

What Happened

The case surfaced on August 29, when Saharanpur police received information about counterfeit currency in the PNB currency chest. An FIR was registered at Sadar Bazar police station under Section 178 of the Bharatiya Nyaya Sanhita. During the initial investigation, the suspected involvement of three PNB employees emerged, following which the bank suspended them.

The three employees identified in the investigation include senior divisional manager Ravi Kumar Kanse, Sofia Market currency chest manager Sushil Kumar and Jagadhri currency chest manager Amit Kumar. Authorities subsequently issued lookout notices as investigators examined their movements and possible contacts.

The discovery was particularly unusual because the counterfeit currency was found inside a bank currency chest rather than being seized from a conventional smuggling route or an individual suspected of circulating fake notes.

How the ₹17.29 Crore Was Detected

The investigation appears to have begun with a much smaller discrepancy.

According to reports, a shortage of about ₹4.36 lakh was noticed in a cash remittance sent from the PNB branch at Ghantaghar in Saharanpur to the Reserve Bank of India's currency operations in Jaipur. That discrepancy prompted a detailed audit of the bank's cash holdings. During the audit, officials initially identified 148 bundles containing counterfeit ₹500 notes, with an estimated value of ₹7.40 crore.

As the examination continued, the suspected counterfeit currency total rose substantially, eventually reaching approximately ₹17.29 crore.

The discovery has led investigators to examine whether genuine currency was systematically removed and replaced with counterfeit notes. Reports from the investigation indicate that CCTV footage showed part-time housekeeper Vishal Kumar handling currency bundles inside the chest. Investigators are trying to establish who authorised or facilitated access to the cash and whether the activity was connected to the bank employees already named in the case.

₹111 Crore Cash Movement Under Scrutiny

A significant part of the investigation concerns a much larger cash consignment handled before the counterfeit notes were discovered.

According to details emerging from the probe, ₹111 crore in currency was sent from Saharanpur through the currency-handling network toward the RBI's Jaipur office on July 6. The consignment reportedly contained 1,900 bundles of ₹500 notes and 800 bundles of ₹200 notes.

Investigators are examining how this cash was counted, sorted and packed, and who had access to the currency during those stages.

The movement of such a large consignment is important because authorities are attempting to reconstruct the chain of custody and determine whether counterfeit notes were introduced before or after the cash reached the currency chest.

A 21-member joint team involving RBI and PNB officials had already been working on the cash trail, examining the movement of currency through counting, sorting, verification and deposit procedures.

Did Fake Currency Reach Branches or ATMs?

Another major question is whether any of the counterfeit notes left the currency chest before the irregularity was detected.

Investigators are examining the possibility that fake notes could have been distributed from the currency chest to other PNB branches or ATMs. At present, however, there is no confirmed public figure establishing how much counterfeit currency, if any, entered wider circulation.

The NIA has said its investigation is focused on identifying the complete conspiracy, determining the roles of other individuals and tracing the source and movement of the counterfeit currency.

That distinction is important: the ₹17.29 crore figure represents counterfeit currency recovered in connection with the case, while the quantity that may have circulated outside the chest remains a matter for investigation.

Possible Nepal Connection

Investigators are also examining a possible Nepal angle, although no definitive cross-border link has been established so far.

Police have been checking the contacts and movements of the accused bank employees and whether they had connections with individuals or networks operating near the Nepal border. Lookout notices were issued amid concerns that suspects could leave the country.

The possible Nepal connection should therefore be treated as an investigative lead rather than an established fact. The NIA has not publicly confirmed that the counterfeit notes originated in Nepal or that a Nepal-based network was responsible.

The agency's wider investigation is expected to focus on identifying the source of the counterfeit notes, determining how they entered the banking chain and establishing whether the suspected operation involved people outside the bank.

NIA Investigation and Amit Kumar's Arrest

Amit Kumar's arrest is significant because he was one of the officials responsible for the currency chest at the relevant time.

The NIA has described him as a key FIR-named accused in the case. After his arrest, a special NIA court in Chandigarh granted transit remand so that he could be taken to the agency's jurisdictional court in Lucknow.

Investigators are expected to question Kumar about the handling of cash inside the chest, the people who had access to the currency, communications with other suspects and the events preceding the discovery of the counterfeit notes.

The agency is also pursuing the roles of the other accused and attempting to trace the source and distribution network.

Key Takeaways

• ₹17.29 crore counterfeit currency recovered: The fake notes were detected inside a PNB currency chest in Saharanpur during an audit that followed a cash discrepancy.
• PNB manager arrested: Amit Kumar, a joint custodian of the currency chest and an FIR-named accused, has been arrested by the NIA.
• ₹111 crore cash trail examined: Investigators are scrutinising a July 6 movement of ₹111 crore toward the RBI's Jaipur office as part of the wider reconstruction of the currency chain.
• Circulation remains under investigation: Authorities are checking whether counterfeit notes reached other bank branches or ATMs before the fraud was detected.
• Nepal link not established: Investigators are examining possible cross-border contacts, but there is currently no confirmed evidence publicly establishing a Nepal-based source.

Why This Matters

The case raises questions beyond the recovery of counterfeit notes because the suspected currency was found inside a regulated banking cash-handling facility. Currency chests are critical links between commercial banks and the RBI's cash-management system, making the alleged substitution of genuine notes with counterfeit currency a serious issue for internal controls and cash verification.

The investigation will therefore need to establish the precise point at which the genuine currency was allegedly removed, how counterfeit notes entered the chest, who had access to the cash and whether any fake currency was subsequently distributed. The answers could determine whether the case was limited to an internal bank fraud or formed part of a wider counterfeit-currency network.

For now, the NIA's probe remains ongoing. The agency is expected to focus on tracing the source of the counterfeit notes, identifying other participants and determining whether any portion of the suspected fake currency entered circulation outside the PNB currency chest.