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An anti-Maoist operation in Chhattisgarh’s Sukma district has led to a striking discovery that may have severe implications for the local economy. For the first time, security forces have found in Maoist camps equipment used to print fake currency.

While this indicates that extensive security operations in the region have crippled the rebels’ cash flow, use and circulation of such fake currency in local markets may create a massive problem.

The startling find was made during a joint search operation by Sukma Police, District Reserve Guard and the CRPF in the forests of Korajguda yesterday.

District police chief Kiran Chavan told NDTV that they launched the search based on intelligence inputs about Maoists printing counterfeit currency in the forest. While the rebels managed to flee, the forces found currency printing machines, ink, templates and fake notes of several denominations — Rs 50, Rs 100, Rs 200 and Rs 500 at their hideout. Several other items, including a gun, a wireless set and a large quantity of explosives, were also seized.

“The way they are printing notes, it is understood that the Naxalite organization is facing a shortage of money. The ongoing operations in the interior areas have significantly reduced their funding, prompting them to resort to printing counterfeit currency,” the senior officer said.

Maoists are known to buy supplies from weekly village markets. Their use of fake currency in these transactions can potentially destabilise the local economy. To counter this, local authorities and security forces are launching awareness campaigns in villages and asking residents to be vigilant and reject any suspicious currency.

Traders and hawkers, especially those in remote areas, are being advised to thoroughly check notes before accepting them.

According to sources, Maoists adopted a new tactic since 2022 to print fake currency and address the organisation’s cash crunch. At least one member from each area committee was trained to fake notes. This currency was then used in local markets and entered the cash system.