Kathmandu, Aug. 10 (PTI): The police have busted a major counterfeit Indian currency racket involving more than half a dozen countries aimed at smuggling the notes into Nepal and various Indian towns bordering the Himalayan nation.

The Kathmandu Metropolitan Police Crime Branch busted the organised network involving Nepal, India, Pakistan, Bangladesh, Malaysia, Thailand and Singapore after carrying out investigations by interrogating over half a dozen people involved in the counterfeit Indian currency smuggling, according to a police official.

A huge quantity of counterfeit Indian currency printed in Bangladesh and Malaysia have been pouring into Nepal on way to India via Pakistan, Thailand and Singapore, Superintendent of Police Devendar Subedi said. The counterfeit currency is being supplied in the market through money exchange counters, casinos and business houses run by members associated with the network, the police official said.

Police officials said Pakistani nationals were involved both directly and indirectly in the smuggling. The police recently arrested a Pakistani national Abdul Wahak when he landed here on board Pakistan International Airlines and seized Rs 1.2 crore counterfeit Indian currency notes in Rs 500 and Rs 1,000 denominations, according to the Crime Branch of the KMP at Hanumandhoka. Last month, the police arrested two Nepalese national along with Rs 40 lakh Indian counterfeit notes brought from Malaysia.

"The arrested have confessed that they paid NRs 320,000 to buy Rs 500,000 counterfeit Indian currency in Thailand and Malaysia," said a police official.