A Pakistani government printing press in the city of Quetta is printing out large quantities of counterfeit Indian currency & US Dollar, The Times of India reported, citing a Central Bureau of Intelligence note to Indian security agencies and the finance ministry.
The rupee notes are then smuggled into India as 'part of Pakistan's agenda of destabilising (the) Indian economy through fake currency,' the daily said.
The notes are 'supplied by the Pakistan government press (at Quetta) free of cost to Dubai-based counterfeiters who, in turn, smuggle it into India using various means,' the report said.
Pakistan's intelligence agency, Inter Services Intelligence (ISI) is alleged to play an active role in the scam.
The notes 'are pushed into India by ISI through all possible channels using smugglers, underworld gangs, terrorists and general air/rail passengers', the report said.
The Indian intelligence agency picked up the trail of the counterfeiters from interrogations of a Gulf-based bookmaker who was deported from Dubai to India, it said.
The Reserve Bank of India has estimated the amount of fake currency in circulation at almost 1.7 trln rupees, the report said.
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