South India is fast emerging as a major entry point for fake Indian currencies with Chennai being the most preferred destination for disbursement of the notes in other parts of the country.
Tamil Nadu is one of the favoured places due to its proximity to the port, official sources said.
Upon receiving a consignment, hawala operators mix fake notes with genuine ones, according to the sources.
The recently busted Rs 200-crore hawala racket by the Enforcement Directorate brought out this modus operandi as well as links with Chennai.
"Chennai is the major hub for bringing in fake currency notes. The printing usually takes place in Pakistan and the notes are then sent to a Gulf country. From their it is sent to Malayasia before being off loaded in Chennai,” a senior finance ministry official said.
In another route used by the fake note dealers, the currencies are brought from Pakistan to Singapore and then through Nepal the consignments are smuggled into Uttar Pradesh and Bihar, the official said.
Some time back, CBI had also in a report stated that Chennai is emerging as a major hub for fake notes.