New Delhi, April 14 : Indian agencies have reported a sharp rise in counterfeit currency seizures, pointing to a renewed push by organised networks to expand operations.

Investigators say the syndicate linked to Dawood Ibrahim, operating from Pakistan, is increasingly directing operatives in India to print fake notes locally instead of relying on cross-border smuggling routes through Pakistan and Bangladesh.

The trend points to a deliberate attempt to scale up production, with signs of a coordinated effort to undermine the Indian economy. Recent months have seen multiple seizures in border regions due to tighter security. At the same time, attempts to drop counterfeit currency using drones are being detected and intercepted with increasing frequency.

An Intelligence Bureau official said that the syndicate is now directing its operatives in India to print fake notes locally and circulate them within the market. They have been advised to keep operations small but frequent to maintain overall volume while avoiding attention.

â??To reduce the risk of detection, members are also shifting bases regularly, making it difficult for agencies to track and pin down a single location,â?? the official added.

The route through the Bangladesh border has also become increasingly difficult for smugglers to use. Enhanced security measures have tightened surveillance, making it harder for operatives to push counterfeit currency into India.

Another official said the strategy now is to expand printing across multiple states, including Gujarat, Uttar Pradesh, Rajasthan, and Punjab. In the past, the syndicate had set up a localised unit in Malda, West Bengal, where high-quality counterfeit notes were produced and were difficult to detect.

â??However, after the unit was uncovered, intensified action by agencies led to a sharp decline in operations,â?? the official said.

Another official said printing capacity in Malda has dropped by more than half after agencies, including the National Investigation Agency (NIA), intensified investigations and enforcement.

Officials added that efforts are underway to push in raw materials needed to set up fresh units to expand local production. If these consignments reach operatives in India, output could increase again. Even as the focus shifts to domestic printing, attempts to move counterfeit currency across the border using drones are expected to continue.

Last month, the Border Security Force (BSF) and Amritsar Police seized counterfeit currency worth Rs 2.5 lakh, which officials believe may have been a trial run. While drones have been intercepted carrying drugs, arms, and ammunition on several occasions, their use for moving fake currency has emerged as a growing concern.

Agencies said the syndicate is now relying on smaller consignments that are harder to detect on radar and surveillance systems. An official noted that operatives are adopting varied methods to increase the circulation of counterfeit notes.

Even as local production gathers pace, the use of drones is expected to continue. The broader objective, officials said, is to generate funds for terror activities and to inflict economic damage through the sustained circulation of fake currency.

/IANS