Bengaluru: A fake ₹500 note used to purchase a packet of cigarettes from a grocery shop has led Karnataka Police to uncover an alleged counterfeit currency printing unit on the outskirts of Bengaluru, resulting in the arrest of an MBA graduate with a history of similar offences.

The accused, identified as Rudresh, was arrested during a raid at Gangondanahalli near Madanayakanahalli after investigators traced the source of the fake currency. Police said he had recently been released from prison in connection with an earlier counterfeit currency case.

Cigarette purchase sparks investigation

The case came to light on July 2 when Anjana Shetty, a 56-year-old grocery shop owner from Hosahalli Kaimara in Tumakuru district’s CN Halli taluk, received a ₹500 note from two men who purchased a packet of cigarettes.

After returning ₹370 as change, she later suspected the note was counterfeit and lodged a complaint at the Huliyaru police station.

Based on the complaint, a special investigation team comprising Huliyaru and Madanayakanahalli police launched an inquiry.

Police trace accused through surveillance

Using vehicle tracking and technical surveillance, investigators traced a blue Maruti Alto allegedly used by the suspects. The trail led police to a hideout in Gangondanahalli, where they conducted a raid and arrested Rudresh.

During the operation, officers recovered counterfeit currency notes and materials allegedly linked to the printing unit.

MBA graduate previously booked

According to police, Rudresh was the prime accused in a counterfeit currency racket unearthed by Davanagere police in 2024. Investigators had alleged that the earlier network circulated nearly ₹20 lakh worth of fake currency within three months.

Police now suspect that after securing his release from prison, he resumed printing fake currency from the Bengaluru outskirts.

Probe continues

Investigators are working to determine the scale of the operation, the amount of counterfeit currency that may have entered circulation and whether others were involved in producing or distributing the fake notes.

Police said further arrests are likely as the investigation progresses.