Six held with counterfeit Rs. 20M

Kathmandu, Apr. 29: A clothing trader from Udayapur thought he had discovered an easy way to double his money. Instead, he lost Rs. 2 million in a sophisticated fraud scheme that used bundles of fake banknotes, staged trust-building tactics and convincing deception.

Police in Kathmandu have now arrested six men and seized counterfeit notes worth Rs. 20 million, allegedly used to cheat victims by promising to exchange genuine money for larger amounts of fake currency that closely resembled real Nepali notes.

Sabin Thapa (name changed), 51, who runs a garment business in Kathmandu, was approached around two weeks ago with what appeared to be a lucrative opportunity.

The offer came from 26-year-old Yog Bahadur Tamang of Tapli Rural Municipality-3, Udayapur.

According to investigators, Tamang told Thapa that his group possessed large quantities of banknotes that looked identical to genuine Nepali currency.

To convince him, the suspect reportedly showed video clips of the notes and claimed they could be used in markets and even exchanged at banks without detection.

At first, Thapa remained doubtful. He questioned how such notes could pass through banks unnoticed.

To gain his confidence, the group offered a trial deal: two notes of Rs. 1,000 denominations in exchange for one genuine Rs.1,000 note.

Thapa accepted the proposal and received two notes of Rs. 1,000 denominations. To test them, he went directly to a bank and asked for smaller denominations in exchange for Rs. 2,000.

The bank reportedly exchanged the money without issue. That single transaction convinced him the scheme was genuine.

Seeing what seemed to be an effortless way to make money, Thapa began exchanging small amounts regularly. Police said he traded between Rs. 5,000 and Rs. 10,000 daily, while the group conducted transactions totalling around Rs. 20,000 with him.

After investing Rs. 10,000 and apparently gaining another Rs. 10,000 in return, he proposed a much larger deal.

Rs. 2M gone in moments

Believing he (Thapa) would receive Rs. 4 million in return, Thapa carried Rs. 2 million in genuine cash to meet the group.

But when he handed over the money and later opened the packaged bundles he had received, the suspects had already disappeared with his cash.

Police said each bundle contained genuine Rs. 1,000 notes only on the top and bottom, while the middle was filled with plain paper.

The lure of doubling his money had cost him Rs. 2 million.

Complaint leads to arrests

Shaken by the loss, Thapa reported the matter to the Kathmandu Valley Crime Investigation Office in Teku.

Based on his complaint, police arrested six suspects on Monday and recovered counterfeit bundles worth Rs. 20 million allegedly used in the fraud.

Those arrested include, Milan Kumar Tamang, 38, of Tapli, Udayapur, Bhavindra Kumar Tamang, 36, of the same area, Prabin Mahatto, 34, of Ratnanagar-5, Chitwan, Muna Dhami, 28, of Gajura Municipality-1, Rautahat, Satya Narayan Chaudhary, 38, of Kalika, Chitwan, and one additional suspect identified during the investigation. 

How the fraud worked

Senior Superintendent of Police (SSP) Santosh Khadka of the Crime Investigation Office said the group did not begin by cheating victims outright. Instead, they first invested genuine cash to build trust.

“They would initially hand over real notes while claiming they were fake. Once victims believed the system worked and came forward with larger sums, they were given counterfeit bundles filled with paper and the suspects fled,” he said.

Police believe the group used the same method to defraud at least three other people besides Thapa.

Officers also seized an electric vehicle (Ba. Pra. 010-32 Cha 7312) and a motorcycle allegedly used in the operation. 

Inside the vehicle, police found a black bag containing 40 bundles of fake currency amounting to Rs. 20 million. Investigators said the rear number plate of the vehicle had been removed, while the front plate was covered with a poster reading “Educational Excursion” to avoid suspicion.

Police said further investigation is under way and suspect more victims may have been targeted in similar scams.