Telangana Police have arrested a suspect in an alleged Black Paper fake currency scam after a complainant claimed he was cheated of ₹13 lakh. Investigators seized 20,000 black paper sheets cut to resemble ₹500 notes and chemical solutions allegedly used to convince victims that the paper could be converted into genuine currency. Police are examining whether the accused acted alone or as part of a wider fraud network.
Telangana Police Bust Alleged ‘Black Paper’ Currency Scam, 20,000 Fake ₹500 Note Sheets Seized
Telangana Police have arrested a man who was accused of cheating a resident of ₹13 lakh by way of the fake currency scheme using the so-called “black paper” trick. During the investigation, authorities seized 20,000 black paper sheets and chemical solutions, and further investigations are underway.
Telangana Police has busted an alleged fake currency fraud by arresting Pathipati Prem Chandu, who allegedly duped a resident of Aswaraopet, Madhu Babu, of ₹13 lakh through a fake currency conversion scheme based on “black paper”. Officials said the case is being investigated by Aswaraopet Police in Kothagudem district.
Police said the accused used to lure victims by claiming that specially prepared black paper sheets, cut in the shape of ₹500 currency notes, could be transformed into real currency after being treated with a special chemical solution. Sources said the demonstration was part of the modus operandi to build trust with victims before demanding huge sums of money.
In the complaint filed by Madhu Babu, the accused first took ₹11 lakh from him for providing specially prepared black paper sheets that looked like genuine ₹500 notes. Later, the victim paid another ₹2 lakh for chemicals to convert the sheets into legal currency, officials said.
Telangana Police investigation uncovers alleged fake currency operation
Telangana Police had recovered 20,000 black paper sheets cut to the size of Rs 500 notes during investigation. Officials said the sheets were packed in 20 bundles and two bottles containing chemical solution allegedly used during demonstrations were also seized from the possession of the accused.
Investigators said the suspect allegedly did chemical demonstrations to supposedly prove that the black paper could be turned into real money. Police believe the protests were part of a planned con strategy to exploit victims’ trust and expectations of fast profits to get them to invest more money.
Authorities have registered a case against Pathipati Prem Chandu under relevant legal provisions. Officials said the investigation is continuing to see if other victims were targeted in similar ways and to follow financial transactions linked to the alleged fraud.
Police are also examining whether the accused acted independently or was associated with a broader network involved in comparable fake currency schemes operating across Telangana or neighbouring regions. Investigators are reviewing financial records and other evidence to establish the full scope of the alleged operation.
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Previous criminal cases and wider concerns over financial fraud
Police say Pathipati Prem Chandu has a criminal record with cases related to counterfeit currency, motorcycle theft and other offences. Officials said earlier cases against him were registered at Bachupally, Ramachandrapuram, and Kukatpally police stations in Hyderabad.
Authorities say fake currency demonstrations are popping up from time to time, often targeting people with promises to multiply money through chemicals, machines or secret techniques. Scams of this type are usually based on misrepresentations, not on any real financial or scientific process.
Cybercrime and financial crime experts say fraudsters often use psychological manipulation to gain credibility and extract larger payments. Small demonstrations, phony success stories and false reassurances persuade victims that fraudulent schemes are legitimate.
They cautioned the public to be wary of anyone claiming they can generate, duplicate or transform currency through chemical processes or specialized equipment. They also said that no one can legally print or duplicate real money outside of authorized institutions and that any such claims are therefore inherently suspicious.
Aswaraopet Police have appealed to citizens to verify unusual financial claims before transferring money or sharing personal financial information with unknown individuals. The public was urged by authorities to immediately report any suspicious activity to law enforcement to help prevent such scams and aid current investigations. Sprouts News will update with official news as authorities follow up on other leads in the case.
