New Delhi, September 1
Former Nepal Prince Paras’s alleged link with underworld don Dawood Ibrahim in the Indian fake currency notes (IFCN) racket may well prompt New Delhi to mull over seeking early meetings of the consultative group on security issues between India and Nepal and the Home Secretaries of the two countries.

Official sources said the matter was serious and warranted an immediate discussion, adding the two countries were in touch with each other. Security concerns relating to the open border between the two countries were also discussed at length between the two sides when Nepalese Prime Minister Madhav Nepal visited India recently.

The sources said Nepal’s repeated assurances that it would not allow its territory to be used for any activity against India have, however, not yielded results largely because of the porous border between the two countries.

“We need to effectively address all issues concerning security, including cross-border crime, and establishing effective communication links between and along the bordering districts to further facilitate the exchange of information,’’ they added.

The involvement of Paras, son of former Nepal King Gyanendra, in the fake currency racket has come as a surprise to Nepal watchers here though he was well known for his wayward behaviour. Paras’s link to the racket was established during interrogation of two Nepali nationals caught by the Madhya Pradesh ATS.

An Indian official, who has served in Nepal, said Paras was always thought to be a juvenile and a wife beater. “In fact, even the Nepali people had doubts about his IQ level…it is surprising that he could be an active player in the fake currency racket which has been going on for years.’’

Often in the past, intelligence agencies have traced to Pakistan the origins of the fake currency that is being used to fund terror activities in India.

The modus operandi is that the fake Indian currency is printed in Karachi, Quetta and Lahore under the patronage of Pakistan's Inter Services Intelligence (ISI). These notes then make inroads into the Indian economy through Nepal, Bangladesh, Dubai, Hong Kong and various other destinations.

Pakistan International Airlines flights and also the sea route are used to dispatch fake currency to India. In the case of Nepal, the Terai region is used extensively to smuggle the currency notes into India. These currency notes are currently said to be in the denomination of Rs 500 and Rs 1,000.