Hyderabad fake currency bust: ₹6.78 crore seized, four arrested in NH-65 intercept
Synopsis
Four men in Hyderabad allegedly printed ₹6.78 crore in fake ₹500 notes using YouTube tutorials, then posed as police officers to rob the very buyers they lured — a counterfeit-meets-extortion racket dismantled when cops intercepted their car near Ramoji Film City on NH-65.
Key Takeaways
Hyderabad police seized counterfeit notes worth ₹6.78 crore and arrested four persons on 1 November 2026 .
The accused operated a fake ₹500 note printing unit from a rented house in Kuntloor , using consumer printers and Photoshop.
Gang members allegedly posed as police officers with fake identity cards , walkie-talkies , and a dummy pistol to extort genuine cash from buyers.
Two separate extortion incidents yielded the gang ₹2 lakh and ₹3 lakh respectively, according to police.
All four arrested accused have been remanded to judicial custody ; three suspects — Jelli Venkatesh , Kunja Balaraju , and Kampasati Srinivas — remain at large.
Police in Hyderabad have dismantled a sophisticated fake currency racket, arresting four persons and seizing counterfeit notes worth ₹6.78 crore on the city's outskirts. The operation, conducted on 1 November 2026, involved personnel from Abdullapurmet Police Station and the Shadnagar Special Operations Team (SOT), who intercepted a car near Ramoji Film City on NH-65 while the accused were allegedly transporting fake currency to Vijayawada.
The Arrests and Initial Seizure
Acting on a tip-off, police stopped the vehicle near Ramoji Film City and seized ₹8 lakh in counterfeit ₹500 notes from the car. The four occupants — identified as M Karunakar, Ch Manikya Reddy, Ch Ratnakar Reddy, and K Ajay Kumar — were taken into custody on the spot.
A follow-up raid on the gang's base of operations yielded the bulk of the haul. Future City Police raided a rented house in Kuntloor, recovering printers, a laptop, currency-cutting machines, and large bundles of counterfeit notes — bringing the total seized amount to ₹6.78 crore in fake ₹500 denominations.
How the Racket Operated
Future City Commissioner Tarun Joshi said interrogation revealed that the accused ran the counterfeit printing unit from the rented Kuntloor house. According to police, the alleged ringleader Karunakar learnt to scan genuine ₹500 notes, edit their images using Photoshop, and print fake versions — skills he reportedly acquired by watching YouTube videos and social media content.
The gang lured prospective buyers by offering counterfeit currency at three to four times the face value of genuine money. When customers arrived with real cash, other gang members — posing as police officers — would descend on the meeting point in vehicles bearing fake number plates, armed with fake police identity cards, walkie-talkies, and a dummy pistol. They would threaten the customers with arrest, causing them to flee and abandon their genuine cash.
Extortion Angle Uncovered
Investigation further revealed that the gang did not limit itself to currency fraud. According to police, the accused allegedly extorted ₹2 lakh and ₹3 lakh from two separate prospective customers using this impersonation method, dividing the proceeds among themselves. The dual racket — fake currency sale combined with staged police raids — allowed the gang to profit without ever delivering counterfeit notes.
Legal Action and Absconding Accused
All four arrested accused were produced before a court, which remanded them to judicial custody. Three other alleged associates — identified as Jelli Venkatesh, Kunja Balaraju, and Kampasati Srinivas — are currently absconding. Police said further investigation is under way to identify any additional persons involved in the network.
The case highlights a growing threat of digitally-enabled currency counterfeiting, where consumer-grade software and equipment are increasingly being used to replicate security documents. Authorities are expected to probe the distribution chain to determine whether fake notes had already entered circulation.
Point of View
Underscoring how accessible currency fraud has become in the age of consumer-grade printing and image editing. The layered extortion angle is equally telling; the gang was, in effect, running two parallel crimes with the same props. Investigative focus should now shift to whether any of these notes had already entered circulation, and whether the Kuntloor printing unit was supplying a larger network — questions the three absconding accused may hold answers to.
NationPress
3 Nov 2026
Frequently Asked Questions
How much fake currency was seized in the Hyderabad bust?
Police seized counterfeit notes worth ₹6.78 crore, all in fake ₹500 denominations, along with printers, a laptop, and currency-cutting machines from a rented house in Kuntloor. An initial ₹8 lakh was seized from the intercepted car near Ramoji Film City on NH-65.
Who were the accused arrested in the Hyderabad fake currency case?
The four arrested accused are M Karunakar, Ch Manikya Reddy, Ch Ratnakar Reddy, and K Ajay Kumar. Three others — Jelli Venkatesh, Kunja Balaraju, and Kampasati Srinivas — are absconding.
How did the gang print fake currency notes?
According to police, the alleged ringleader M Karunakar learnt to scan genuine ₹500 notes, edit their images using Photoshop, and print counterfeit versions by watching YouTube videos and social media content. Consumer-grade printers and cutting machines were used at a rented house in Kuntloor.
How did the gang's extortion scheme work?
After luring buyers with offers of fake currency at three to four times face value, other gang members would pose as police officers — equipped with fake identity cards, walkie-talkies, and a dummy pistol — and threaten the customers until they fled, abandoning their genuine cash. The accused allegedly extorted ₹2 lakh and ₹3 lakh from two separate victims in this manner.
What legal action has been taken against the accused?
All four arrested accused were produced before a court, which remanded them to judicial custody. Investigation is ongoing to trace the three absconding associates and identify any other members of the network.
