The Bhutanese Leading the way.
The Royal Bhutan Police (RBP) seized counterfeit Indian Rupees (INR) worth INR 1.77 million and arrested two Bhutanese individuals in connection with the case on 14th May 2026.
The arrests were made by the South Thimphu Police Station (STPS) following investigations into the circulation of fake INR notes.
The two suspects, aged 36 and 37, later confessed to the crime during police interrogation.
According to police, the case emerged after authorities received credible intelligence and an official complaint regarding the circulation of counterfeit currency.
Initially, a verbal complaint was lodged by a shop owner in Khasadrapchu, Thimphu, who reported that the two suspects had attempted to use counterfeit currency at the shop. However, the shop owner identified the notes as fake, preventing the transaction from taking place.
Police said the suspects later succeeded in using the counterfeit currency at the STCBL fuel depot in Namseling, where they purchased fuel worth INR 3,000 using fake INR notes.
At the same fuel station, another customer who was refueling reportedly offered to transfer the payment for the fuel online in exchange for cash, as he needed INR.
However, he later discovered that the notes were counterfeit, and subsequently reported the matter to police.
Both incidents occurred on 12th May 2026.
During interrogation, the suspects reportedly confessed to establishing direct contact with an Indian national through social media platforms including WhatsApp and Facebook.
As per the police, the Indian individual allegedly lured the suspects by offering a 1:2 exchange ratio, promising double the value in counterfeit notes for any genuine currency provided.
Following the arrangement, the two suspects pooled their resources and travelled to an adjoining Indian border town in early May 2026 carrying approximately INR 1 million in genuine currency.
According to the police, the suspects initially withdrew INR 25,000 each in genuine notes from banks, while the remaining amount of approximately INR 800,000 was collected using the identities of known friends.
Over INR 127,000 was reportedly exchanged in Jaigaon using Bhutanese currency.
Upon reaching Jaigaon, the suspects allegedly met the Indian supplier, finalized the illegal exchange and smuggled the counterfeit currency into Bhutan.
Police said the suspects claimed they were supposed to receive counterfeit currency amounting to INR 2 million in exchange for the genuine INR 1 million that they carried.
However, the suspects later claimed that they did not receive the full promised amount.
As part of the operation, police seized INR 1.1805 million in counterfeit INR 500 denominations from the suspect aged 36 and INR 0.5895 million in counterfeit INR 500 notes from the suspect aged 37.
In total, counterfeit INR amounting to 1.77 million was intercepted and removed from circulation.
Police said they are coordinating with Indian counterparts to further investigate the larger syndicate involved in the counterfeit currency operation.
RBP has urged the public to remain vigilant while handling currency and to exercise caution in verifying the authenticity of notes, particularly during financial transactions.
Police also requested individuals to immediately report any suspicious currency notes or related activities to the nearest police station.
RBP said that although counterfeit currency has not significantly infiltrated the local market so far, however, the risk is increasing.
As per the Penal Code of Bhutan, a defendant shall be guilty of the offence of counterfeiting if the defendant knowingly manufactures, distributes or sells counterfeit medicinal products, false currency, coin or bank notes.
The offence of counterfeiting shall be a felony of the fourth degree, carrying a minimum sentence of three years and a maximum which shall be less than five years’ imprisonment.
