Raid in Chennai unearths Rs 9.5 crore dummy notes, Kerala businessman under hawala probe

CHENNAI: In a two-day late-night operation, authorities seized dummy currency notes with a face value of Rs 9.5 crore from a Kerala-based businessman in Chennai’s Royapettah area, sparking a probe into suspected hawala transactions and financial irregularities.

Acting on a confidential tip about alleged stashing of unaccounted funds, Income Tax Department officials raided a residence on Puram Prakasham Road in Royapettah on Tuesday night.

The operation later saw the involvement of the National Investigation Agency (NIA), with searches continuing until Wednesday. During the raid, officials questioned Rashid, a resident of Kannur, Kerala, and reportedly discovered 2,000-rupee denomination dummy notes worth Rs 9.5 crore hidden in his car.

“The dummy notes, not legal tender, were confiscated, and a formal complaint was lodged with the Royapettah Police,” an Income Tax official stated. Police have since registered a case and launched an investigation into the source and purpose of the seized notes.

Authorities are probing whether Rashid, whose Chennai property was searched, was involved in hawala networks — an illegal cross-border money transfer system — or other financial crimes.

“The focus is on tracing the origins of these dummy notes, their intended use, and potential links to broader illicit activities,” sources revealed.