Probe finds major security breach at Hoshangabad currrency paper mill
NEW DELHI,
February 20, 2015
Updated: February 20, 2015 20:02 IST
Devesh K. Pandey
A high level probe has revealed the manufacture of bank note papers
using defective security thread with Arabic inscriptions in the
Hoshangabad mint in Madhya Pradesh in 2012.
An inquiry into a serious security breach at Madhya Pradesh's
Hoshangabad mint in the manufacture of bank note papers using defective
security thread with Arabic inscriptions in 2012 has termed the lapse so
serious that it could impact national security, exposing the country to
allegations of counterfeiting its own currency.
The inquiry, headed by a former CBI Director, has found that it was a
definite case of collective failure of supervision at all levels and
that the management at all levels failed to understand the gravity of
the incident. They wilfully kept the incident away from the government
for more than three months, whereas the situation demanded immediate
action.
The defective security thread was first detected at the mint on November
8, 2012, as it was found to be breaking frequently on the paper
machine. On detailed examination of unused spools, the thread was found
to be non-magnetic, many were simply blank and others contained Arabic
texts instead of the usual “RBI Bharat” in Hindi and English.
The defective threads were allegedly part of the supply of 429.187 kg of
security thread by Aristocraft International Pvt. Ltd in April 2012.
Surprisingly, instead of confiscating the defective threads, the mint
officials verbally contacted the suppliers who, as part of the damage
control exercise, examined 96 wooden boxes containing the already
manufactured Cylinder Watermarked Banknote papers and replaced 654
sheets with defective threads. Over 53 kg of threads were returned to
the supplier without conducting any inquiry.
A consignment of 170 boxes sent to the Nashik mint was also examined and four boxes contained defective papers.
It was 14 months after the incident that the Department of Economic
Affairs had appointed a three-member committee to inquire into the
lapses. It found that there was a deliberate attempt by the Hoshangabad
mint and the Security Printing and Minting Corporation of India Limited
to suppress serious national security lapses.
(The Hindu )
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