Many sets of the half-printed currency notes were found abandoned in Subhedar Vasti ten days ago. There was a mad scramble among locals to pick up the notes. They contained the signature of RBI Governor C Rangarajan, the national emblem and the picture of Mahatma Gandhi. Those who took the notes could have cut them to near perfection and circulated them, it is believed.

When the grapevine reached the local police, they swung into action and interrogated some people.

The Currency Note Press in Nashik normally burns the rejected sets of notes. Recently, for the first time, the Currency Press decided to sell the rejected sets to a trader as the machine used for burning notes has not been functioning for thelast three months. The rejected notes were sold to a broker named Totla in Nashik, at the rate of Rs 2 per kilo. The notes were later sold to a paper mill in Shrirampur for making pulp for paper production. They were brought here under tight security.

About seven tonnes of rejected currency notes were to be used for making pulp. The rejected notes could not be recycled as the paper used for the notes is of superior quality. They also cannot be easily damaged. Barring one bag, the rest were transported back to Nashik a month ago.

After the incident came into light, some officials of the Currency Note Press had visited Shrirampur, but did not inform the local police.