No clear link to China in fake rupees case

The Times of India reported Monday that some 6.7 million rupees ($111,862) worth of fake Indian currency notes seized in June was found to be from China.

However, Indian officials reached by the Global Times Monday declined to provide details of the link.

The newspaper claimed it was the first time that India has found evidence of fake money routed from China.

The first consignment of 3.7 million rupees was spotted by India's Directorate of Revenue Intelligence on June 22 and it was sent through an international courier from the Xinjiang Uyghur Autonomous Region to a Delhi restaurant.

Two days later, another consignment of 3 million rupees was seized on the Indian border with Nepal. The fake notes were reportedly hidden in electronic dolls, piano and a cradle imported from Hong Kong.

"There is very little evidence to prove that counterfeit money is being pumped into India via Pakistan or from China. We are acting and reacting only on conjecture," Anirudh Deshpande, a professor with the University of Delhi, told the Global Times Monday.

The Chinese government wouldn't benefit from making and channeling fake currency notes to India, Deshpande added.

India sees Pakistan as its chief source of fake notes.

An unnamed official from the Chinese embassy in India told the Global Times that they have not received any notification from local authorities.

An officer from India's National Investigation Agency (NIA) told the Global Times on condition of anonymity that the investigations are at a nascent stage and nothing can be revealed at this point.

The newspaper report said the first consignment raised concerns because the incident came 10 days after three Chinese nationals from Xinjiang were arrested in the Leh area of Kashmir while trying to cross over to Pakistan.

The three people arrested appeared to be trying to import fake currency into India, the NIA officer told the Global Times.

However, the Chinese embassy official said it could not yet be confirmed that the three are Chinese nationals.