NIA Arrests PNB Manager in ₹17.29 Crore Counterfeit Currency Case

The National Investigation Agency (NIA) has arrested Amit Kumar, a bank manager and key accused in a major counterfeit currency conspiracy involving the Punjab National Bank (PNB) currency chest in Saharanpur, Uttar Pradesh. The arrest, confirmed on September 7, 2026, in Chandigarh, marks a significant escalation in the probe into the discovery of fake Indian currency notes with a face value of ₹17.29 crore. Kumar, who served as a joint custodian of the currency chest, was taken into custody following the NIA's decision to take over the investigation from local authorities on September 3, 2026.

The case, which has sent shockwaves through the regional banking sector, centers on how such a substantial volume of counterfeit notes bypassed standard security protocols within a formal banking institution. Investigators are currently reconstructing the chain of custody for currency consignments, specifically examining a July 6 shipment of ₹111 crore sent from Saharanpur to the Reserve Bank of India’s (RBI) office in Jaipur. The discovery of the fake notes has prompted a wider audit and raised urgent questions regarding the integrity of the currency-handling network and the potential for counterfeit funds to have entered broader circulation.

The NIA officially re-registered the case as RC-02/2026/NIA/LKW on September 3, 2026, after the initial investigation was launched by the Sadar Bazar police station in Saharanpur. The original FIR, filed on August 29, 2026, was registered under Section 178 of the Bharatiya Nyaya Sanhita (BNS). By assuming control, the federal agency aims to uncover the "complete conspiracy" behind the storage and potential distribution of the counterfeit notes, which were found hidden within the bank's currency chest in the Sofia Market area.

Following his arrest in Chandigarh, Amit Kumar was produced before a Special NIA Court, which granted a two-day transit remand to facilitate his transfer to the Special NIA Court in Lucknow. The agency is actively working to identify and apprehend other individuals involved in the conspiracy. The involvement of three PNB officials, including Kumar, was identified during the initial inquiry, leading to their immediate suspension by the bank. Investigators are now scrutinizing electronic devices and documents seized from the residences of the accused to map their contacts and movements.

The investigation into the source of the counterfeit notes began after a discrepancy was noted in currency consignments transferred from the PNB branch at Ghantaghar to the RBI’s Jaipur office. The initial audit, which commenced on August 9, 2026, uncovered 148 bundles of counterfeit notes, each containing a thousand ₹500 denominations, with an initial estimated value of ₹7.40 crore. As the audit expanded, the total value of the recovered fake currency rose to approximately ₹17.29 crore.

Evidence gathered during the probe includes CCTV footage that reportedly shows a part-time housekeeper, identified as Vishal Kumar, removing notes from currency bundles while working inside the secure currency chest. Investigators are now focused on determining at what stage the counterfeit notes were introduced into the system and whether the accused utilized their positions as custodians to facilitate the swap. The packing and dispatch procedures for the July 6 consignment, which included 1,900 bundles of ₹500 notes and 800 bundles of ₹200 notes, are under intense scrutiny to identify the exact point of compromise.

A significant dimension of the ongoing investigation involves the possibility of a cross-border network, with authorities probing potential links to groups operating near or across the Nepal border. The issuance of lookout notices against the three PNB officials was driven by concerns that the suspects might attempt to flee the country. While investigators are actively examining the contacts and movements of the accused, they have emphasized that a definitive connection to Nepal remains a line of inquiry rather than a confirmed fact.

Saharanpur SSP Abhinandan has confirmed that the search operations have yielded important evidence, which is currently being analyzed by the joint team of RBI and PNB officials. The investigation has also expanded to include neighboring districts in Haryana and Uttarakhand, as authorities work to trace the full extent of the counterfeit currency's movement. The primary objective remains to establish whether any of the fake notes successfully entered circulation through ATMs or other bank branches before the irregularity was detected by the audit team.

The legal proceedings are currently in the early stages of the federal investigation. With Amit Kumar now in custody, the NIA is expected to focus its efforts on interrogating the accused to identify the remaining members of the conspiracy and the source of the counterfeit notes. The agency has stated that its investigation is continuing to unravel the full scope of the operation, including the procurement and distribution channels.

As of September 9, 2026, the case remains under the jurisdiction of the Special NIA Court in Lucknow, where the accused will be produced following his transit remand. The bank's internal suspension of the three officials remains in effect, and the joint team of RBI and PNB investigators continues to conduct a comprehensive audit of the currency chest's records. No further arrests have been officially announced, and the agency has not yet disclosed the final findings regarding the total amount of currency that may have already moved outside the bank's control.