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Currency Coin Scam Hits India.

June 7, 2007

You must have always noticed that whenever the Congress Government is in power, Indians have to face the wrath of a Financial Scam. Be it the Bofors Scam or the 1994 – Securities Scam or 2005 – SEZ Land Scam.

To your left you can see a Rs 2 coin made of Cupro-Nickel which weighs 6 gram and is 26 mm in diameter. Scamsters have been collecting coins of Rs 2 denomination and smuggling out of the country, mainly to Bangladesh where they are melted and re-minted to form statues and other metal articles. Why only coins of Rs 2 denomination ?

Because you get 6 gram of Cupro-Nickel. While in coins of Rs 5, the weight is only 9 gram, proportionately it should have been 15 gram but they aren’t because the coins of Rs 5 came into circulation when the prices of Cupro-Nickel had already appreciated and thus they have just 9 gram of Cupro-Nickel.

It is the duty of the Central Government of India to protect its currency. Instead the Government has asked RBI to pump 900 Million fresh pieces of coins in May-2007. I overheard some folks talking that for every Rs 100 of these Cupro-Nickel coins, their is a kingpin who is paying Rs 160 in Cash. Imagine the depth of the racket and our government doing nothing.

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