Amid heightened national security after the Pahalgam killings, Tehelka SIT report reveals how illicit forex trade — suspected of aiding terror networks — continues to flourish unchecked in Delhi’s Nizamuddin area.
On 22 April 2025, the country was rocked by the deadliest terrorist attack on ordinary civilians in India since the 2008 Mumbai attacks. Four armed terrorists from Pakistan attacked tourists in the Baisaran meadows of Pahalgam in Jammu and Kashmir, killing 26 civilians. The Resistance Front (TRF), an offshoot of the Pakistan-based Lashkar-e-Taiba, claimed responsibility. The terrorists targeted Hindu tourists—asking their religion before shooting—though a Nepali tourist and a local Muslim were also killed. The attackers, armed with M4 carbines and AK-47s, entered the tourist spot in Baisaran valley, surrounded by dense pine forests, and carried out the carnage.
In response, India launched Operation Sindoor to destroy the terror bases, which, it believed, were behind the attack. Indian armed forces struck at nine terrorist sites in Pakistan and Pakistan-occupied Kashmir, and claimed to have killed 100 terrorists. Pakistan retaliated with drone attacks and shelling in India’s border states. India, in turn, struck back with missiles and drones, inflicting heavy damage on at least eight Pakistan Air Force bases. The low-intensity conflict between the two neighbouring countries came to an abrupt halt after US President Donald Trump took credit for brokering a ceasefire between India and Pakistan, calling it a “historic achievement.” However, the Indian government swiftly rejected Trump’s assertion. At the time of writing, the two countries have agreed to extend the ceasefire.
However, nearly a month after the attack, the suspects of Pahalgan massacre remain at large. On May 13, the Jammu and Kashmir Police released photographs of three men believed to be involved in the Pahalgam attack. To accelerate the investigation, the authorities also announced a cash reward of Rs 20 lakh for information leading to their arrest. Sources say such a gruesome attack would not have been possible without local support. The Pahalgam incident is the latest in a long line of terror attacks India has faced over the decades. Successive governments have taken various measures to make the country terror-free, but time and again, terrorists have put paid to these efforts by striking again.
Illicit funding remains one of the most pressing challenges any government faces in the fight against terrorism. From where do terrorists get the money and logistical support to strike within India? This question has been on every Indian’s mind for decades. While Pakistan is widely believed to be the mastermind behind these attacks, who are the people supporting them locally? Who is funding them, and through what routes is this money reaching the terrorists? These questions have once again taken centre-stage after the Pahalgam attack.
According to experts, foreign exchange scams could be one such route. Funds laundered through these scams can pass through multiple channels—potentially including the forex market—and be diverted to terrorist organisations or individuals. This forex route may have escaped scrutiny until now, but could it have been used to fund the Pahalgam attackers? That remains a matter of investigation. The Financial Intelligence Unit (FIU) in India has previously traced illegal currency flows linked to both terrorism and smuggling.
Foreign exchange transactions in India are regulated by the Foreign Exchange Management Act (FEMA). Any transaction conducted without a proper bill or receipt is considered illegal. Both the money changer and the customer face legal consequences if found engaging in such activity. Authorised forex dealers are required to issue a receipt for every transaction. This serves as proof of purchase, ensuring compliance with Indian law and protecting customers from future disputes.
After the Pahalgam attack, major Indian cities, including Delhi, were put on high alert. At a time when all security agencies were vigilant, Tehelka conducted a sting operation into illegal foreign exchange transactions in Delhi. We visited several money exchangers posing as fake clients in the Nizamuddin area, located close to Nizamuddin Dargah and its police station. To our surprise, despite the high alert, all money exchangers—claiming to be authorised by the Reserve Bank of India—were caught on camera making illegal foreign exchange deals.
“We will give you Saudi Riyals in exchange for Rs 2 lakh in Indian currency, without any bill, passport, or visa. But it won’t be our responsibility if agencies catch you for carrying foreign currency illegally,” said Zaid, a money exchanger operating under the name Anam Exchange at Dargah Nizamuddin area, to a Tehelka reporter.
“I will give you Chinese Yuan in exchange for Rs 2 lakh, British Pounds for Rs 5 lakh, and Russian Rubles for Rs 1 lakh—all without any valid documents or bills,” said Naim Khan, another money exchanger in the area, running an establishment under the name SGS Forex Pvt Ltd, to the reporter.
“In exchange for Rs 2 lakh in Indian currency, we’ll give you US dollars in cash. We won’t give you a bill, nor will we ask you for any documents,” said Sarfaraz, who runs Shifa Forex at Dargah Nizamuddin area, to Tehelka.
“Buying foreign currency in India without documents is illegal. But I’ve been doing this for years. I get foreign currency without paperwork from my trusted exchangers. If you want, I can arrange it for you too,” said Prashant Singh alias Pintu, an independent broker, to Tehelka.
Before we focus on the Nizamuddin foreign exchange dealers, let’s turn to Prashant Singh alias Pintu. Pintu is an independent operator who has been involved in dollar and gold smuggling for years and is known to bring Thai currency into India through the hawala route. His confession to Tehelka exposes a broader network of dollar smuggling and hawala money movement. Tehelka met Pintu well before the Pahalgam attack. At that time, he told our reporter that he had long been smuggling both gold and dollars, though he said dollar smuggling is more profitable. Pintu confessed that he buys US dollars from the Indian black market, illegally, takes them to Thailand, converts them into Thai baht, and brings the money back to India through hawala channels. Since he gets a good exchange rate in Thailand, he said he earns a significant profit on the return.
In the following revealing exchange, Pintu lays bare the mechanics of his smuggling network—how gold is brought in from Thailand and US dollars are taken out of India, only to be converted into Thai baht and routed back as Indian currency via Hawala. The margins may appear modest, but the network is robust and time-tested.
Pintu- Hum kaam kartey hain dollar aur gold mein. Aur dono ke profit alag alag hain, agar hum 100 gram gold latey hain 50 hazar rupees bachta hai. 100 gm ki value hui 5-5.5 lakh rupees. Aur dollar mein bethtey hain 8.5 lakh.. ek poora bundle aata hai…usmein hame Rs 2.25 bachtey hain to wo usmein 2500 rupees approx bachtey hain.
Rporter- Ye laatey kahan se ho aap gold aur dollar?
Pintu- Ye Thailand se laatey hain. Gold Thailand se latey hain; dollar India se lekar jaatey hain.
Reporter- Kahan jaatey ho?
Pintu- Bangkok mein.
Reporter-Dollar India se lekar jaatey ho.. wahan usey Indian currency mein change karwatey ho?
Pintu- Nahi.. Thai currency mein change karwatey hain uske baad hum isko hawala lagwakar India mein laatey hain…India mein paisa return aa jata hai Indian currency mein. To hame sab milakar 20-22 hazar bachta hai.
[What emerges from this conversation is how money still moves across borders through informal channels. This snapshot reveals that hawala remains active despite stricter financial checks and monitoring.]
Pintu now explains how dollar smuggling has adapted to evade scrutiny by using multiple carriers and smaller consignments in a continuous loop between India and Bangkok. Each round brings small profits, but the operation grows by repeating the process. The network also offsets travel costs by carrying clothes and electronics on the side.
Reporter- 20-22 hazar rupaye kitne par bachtey hain?
Pintu- Rs 8 lakh par ..per trip. Jaise mein aaj gaya wahan par exchange karwaya aur meine return mare aur paise India mein aa gaye. Ab India mein wo bande return mein phir gaya.. to cycling system hai.
Reporter- Nahi jo paise hawala se India mein aaye wo phir bahar jaatey hain?
Pintu- Phir hamara doosra ladka…hum akele kaam to karte nahi hain, to wo paise wapas aa gaye ..to aaj Jeetu bhai wapas jayega wo paise lekar. To aaj Rs 2500 ka profit aaya, kal bhi Rs 25 k ka profit aayega..
Reporter- Kitne par 25k ka bataya aapne?
Pintu- 8.5 lak par.
Reporter- 8.5 lakh par Rs 25 hazar ka profit aapka?
Pintu- Payega aur hum cycling mein isko 20-25 din mein 2.5 lakh kar detey hain.. ye profit hai.
Reporter- Matlab ek chakker mein Rs 25 thousand to 10 chakker mein 2.5 lakhs?
Pintu- Haan.. ye profit hai aur ticket ka jo nikalta hai, hum saath mein kapda bhi laatey hain, electronics items bhi latey hain, aur bhi bahut sara samaan.. to hum ticket aur custom us mein kar letey hain.
[What we learn is how volume is built through repetitive acts—profits are small per trip but add up over repeated runs. Smuggling now seems to run more efficiently than before.]
Pintu, in the following exchange, admits that he avoids paying tax by buying dollars from the black market without any paperwork. He explains that going through legal channels would wipe out his profit due to bills and GST.
Reporter- Ye bataiye ismein tax kiska bacha.?
Pintu- Tax dekho , agar hum proper tarike se jayenge, to poora bill banega, to jo cheez hame 8.5 lakh ki padh rahai hai wo phir hame 8.70 ki padegi, zyada hi padegi, GST milakar to jo hamari bachat hai wo sari usmein chali jayegi.
[What this shows is how black market trade thrives not just on secrecy but on simple cost-cutting. For players like Pintu, legality means not safety, but loss.]
Pintu now reveals how they manage to smuggle dollars through airport security without getting caught. He says the currency is concealed in such a way that even X-ray machines can’t detect it. He admits that bribes are sometimes paid, but hastens to add that the focus remains on clever concealment to avoid last-minute trouble.
Pintu- Wo wahan jakar kuch bhi karein wo paise hame equal equal ho gaya. Agar hum yahan se custom ko kuch cut de detey hain, 5000- 3000 rupees….3000-4000 per banda chala jaata hai, usko pata hota hai… magar phir bhi hum us paise ko bahut manipulate karke le jaatey hain. Aaisa nahi ki jeb mein daala chal diye, kyunki risk hota hai, kal ko wo mukar gaya, keh diya mera senior aa gaya tha mein kya kar sakta hoon, isliye bahut manipulate karke le jaatey hain.
Reporter- Jaise 10,000 dollar hain usey aap alag alag rakhtey hain.
Pintu- Aisey system mein rakhtey hain ki wo X-ray mein bhi nahi aata.
Reporter- Aisa bhi hai?.. wo X-ray mein aayega bhi nahi?!
[We learn how smugglers rely not only on corrupt officials but also on crafty hiding techniques. In this underworld economy, we find if technology a threat to smugglers, they have found ways to outwit the same.]
Pintu, in the next segment, describes how he bypasses official currency regulations by buying dollars from the black market without any paperwork. He openly admits to dealing in large daily volumes, far exceeding legal limits, and insists on unbilled, off-the-record transactions to avoid scrutiny.
Reporter- Accha dollar kaisey kharid sakta hai koi, usme koi document ki zaroorat nahi hoti.?
Pintu- Bill ke sang chahiye to bahut kuch hai…India mein na aap saal mein bas ek baar 10,000 dollar bhej saktey ho apne passport mein. Uske baad aap dobara jaogey to wo nahi denge, kyunki aapne ek hi baar mein bhej diya.
Reporter- Accha saal mein ek passport par Rs 10,000 aa saktey hain ?
Pintu- Sirf 5000.
Reporter- Aur aap kitna latey ho?
Pintu- Sir, hame paper chahiye hi nahi, wo kacchey mein dete hain, hame kacchey mein hi chahiye GST nahi katwana, agar pakkey mein chahiye.. paise account se katenge.
Reporter- Aap passport bhi nahi dikhate honge?
Pintu- Mein kuch nahi dikhata.
Reporter- Aap kitne le letey ho saal mein.
Pintu- Saal mein..mein daily ke 25000 dollar le leta hoon.
Reporter- To bahut aage nikal gaye aap to!
[What emerges is a clear disregard for foreign exchange rules. When loopholes in the system are not enough, they’re ignored altogether. The black market flourishes wherever regulators overlook the rule-breakers’ tactics.]
In the following portion, Pintu candidly admits to bribing customs officials to facilitate dollar smuggling through airports. He claims the system is well-oiled, naming multiple airports where such operations are routine and openly negotiated.
Pintu- Dekho sir, bina officer ke kaam karna to bewakoofi hai. Kal ko koi baat hoti hai to mein bol bhi sakta hoon sir thoda se dekh lijiye…agar aap letey hain to kahin na kahi riyayat bhi karenge. Wo bhi zaroori hai, XXXX airport mein koi 10 lakh.. 50 lakh se neeche baat hi nahi karta, jitna paise utna hi kaam hota hai.. aur seedha seedha hota hai.
Reporter- Yahan se bhi XXXX Airport se kaam ho raha hai matlab?
Pintu- XXXX.. aisa koi airport nahi hai jahan se ye kaam na ho raha ho.
Reporter- Yehi kaam.. dollar ka?
Pintu- Dollar ka, gold ka…gold mein risk bahut hai.
Reporter- Aap sirf Bangkok se hi kar rahe ho?
Pintu- Haan, beech mein maine Dubai se kiya tha.. second lockdown ke samay…Dubai bahut expensive hai to hamara nahi bann paya tha.
[This shows how bribes to officials make smuggling easy. Once those in charge look the other way, enforcement collapses and the whole system starts working for the smugglers instead of stopping them.]
In the following exchange, Pintu admits to carrying far more dollars than what Indian rules allow. He explains how he bypasses legal limits by sourcing foreign currency from the black market, citing Karol Bagh as his base.
Reporter- Nahi aap ye keh rahe ho dollar ki ek limit hai India se bahar le jaane ki.?
Pintu- India se bahar le jane ki sirf India mein hi limit hai , videsh waalon ki nahi.
Reporter- Ek bande ki kya limit hai?
Pintu- Ek bande ko Rs 1500-2000 tak US dollar.
Reporter- Aap kitna le jaatey ho?
Pintu- 15000-20,000.
Repoprter- Ye dollar aapke pass kahan se aatey hain?
Pintu- Hum kharidtey hain local market se…yahan par Karol bagh se.
[We see how easily smugglers break currency rules. Once the money goes into the wrong hands, rules stop mattering—and the system meant to stop them ends up helping them instead.]
In this part, Pintu openly accepts that purchasing foreign currency without documents is illegal, but says it’s a common practice. To buttress his argument, he contrasts the legal route—via banks and authorised agents—with the undocumented method he offers, which involves no ID checks. He even promises to arrange dollars or Euros in bulk through his network.
Reporter- Accha bina passport ke dollar nahi kharid saktey India mein?
Pintu – kharid saktey hain.
Reporter- Lekin wo illegal hoga?
Pintu- Black marketing hoga..24 rupee rate hain lekin wo 25 denge.
Reporter- Lekin wo legalized nahi hoga?
Pintu- Nahi.. aap prove kaise karogey?
Reporter- Agar legalized karwana hai to passport dena padega?
Pintu- Legally lena hai to bank se lena hoga, white hoga, poora GST katega..phir white collar hoga to aap kahin bhi jaogey dikha saktey ho ye mere bill hai etc. aap jawab de saktey ho na.
Reporter- To without document easy hai logon ko?
Pintu-Haan.
Reporter- Aapki setting kaisi hai?
Pintu- Setting nahi.. aapko bhi mil jayenge, mein number de deta hoon aapko.. aaj to nahi.. magar 20-25 hazar logon ke pass hotey hi hai.
Reporter- Delhi mein hi?
Pintu—Haan.
Reporter- Aap dilwa dogey..bina passport, visa ke?
Pintu- Haan, Dollar, Euro.. kuch bhi.
Reporter- Bina passport ke?
Pintu- Haan.
[We learn how access to foreign currency, even in large amounts, is being normalised outside the legal system. The ease with which such channels are offered reflects how rules are routinely sidestepped.]
This was one part of Tehelka’s investigation, which exposed how an agent is illegally carrying dollars from India to Bangkok and, after converting them into Thai currency, is bringing the money back to India through hawala channels.
We now turn to the second part of our investigation, carried out just after the Pahalgam terror attack, which exposed money exchangers illegally converting currency without any documentation. As part of this, we met Zaid, who runs a money exchange business under the name Anam Exchange in Delhi’s Dargah Nizamuddin area. We told Zaid that we needed Saudi Riyals worth Rs 2 lakh in Indian currency. He agreed to provide the Riyals without any legal documents or bill, but warned of the risks involved if caught.
Zaid – Riyal kitna chahiye?
Reporter- 2 lakh Indian currency ka.
Zaid (on phone)- Riyal kitne ka hai?…23.20 paise ka hai.
Reporter- 23.20 paise ek Saudi Riyal ka…kitna ho gaya 2 lakh ka?
Zaid- 8,620.
Reporter- 8620 Saudi Riyal mil jayenge, 2 lakh ke?
Reporter- Koi document to nahi dene padenge?
Zaid- Agar bill banwana hai to dene padenge.
Reporter- Nahi bill nahi banwana
Zaid- Apne risk par lekar jana phir.
Reporter- Apna risk matlab?
Zaid- Rok lein to hamari koi zimmedari nahi rahegi.
Reporter- Theek hai wo to hamara risk hai…usmein phir ye hai ki passport, visa hamien kuch nahi dena.
Zaid- Nahi.
[This exchange highlights how illegal currency trading thrives on trust and risk, bypassing formal checks. It reveals how the makeshift system quietly shifts the risk onto individuals, leaving them vulnerable.]
Tehelka investigation now moves on to another money changer of Nizamuddin area, Naim Kha, who runs his money exchange business with the name of SGS Forex Pvt Ltd. We told Naim Khan that we need Chinese, Russian and British currency in exchange of Indian currency of Rs 1 lakh, 2 lakh and 5 lakh, respectively. He quotes exchange rates on the spot, works out the amounts quickly, and even confirms that no bill will be required.
Reporter- British pound?
Naim- Kitna hai?
Reporter- 5 lakh Indian currency.
Naim- British chaiye aapko?
Reporter- Hmm., kya rate hai?
Naim- 114.90.
Reporter- 114.90 ka ek pound ?
Reporter- Aur Russian ka?
Naim- Abhi hain nahi hamare pass.. 5-6 k hain
Reporter- 5-6 k …uska kya rate hai?
Naim- 1.05 paise
Reporter- Ek rupee 5 paise..aur Chinese?
Naim- Hai.
Reporter- Chinese ka kya rate hai.?
Naim- 12.80 hai.
Reporter- Rs 12.80 ..2 lakh ka kitna ho gaya?
Naim- Chinese..Rs 15625
Reporter- Without bill mil jayega na?
Naim- Bill chahiye iska?
Reporter- Nahi chahiye.
Naim- 5 lakh ka pound chahiye / 2 lakh ka..
Reporter- …Ruble.
Naim- Aur Yuan?
Reporter- 1 lakh ka..teeno ke sahi rate laga lo?
Reporter (continues) – Naim bhai bataiye phir..document to nahi chahiye?
Naim- Nahi.
Reporter- Mein phir ek ghante mein aa jaun?
Naim- Haan aa jao.
[This brief but telling exchange shows how foreign currency can be obtained in bulk, off the books. The deal is informal, brisk, and clearly outside the law. It reveals a system running on trust and routine illegality—no questions asked, no papers needed.]
We now met Sarfaraz, who runs money exchange business at Shifa Forex in Nizamuddin. Sarfaraz quickly agrees to exchange Rs 2 lakh into US dollars—without seeking any identification or documentation. He calculates the exact dollar amount, insists the rate is the best available, and reassures that no paperwork will be involved. The deal is swift, unregulated, and worry-free.
Reporter-Money exchange ho jayega?
Sarfaraz- Kitna?
Reporter- 2 lakh Indian currency…Kya rate hai?
Sarfaraz- 8,660.
Reporter- 8,660?
Sarfaraz- Haan.
Reporter- Kitne dollar milenge US?
Sarfaraz- 100 dollar, 8660 ka rate hai.
Rporter- 2 lakh ka kitna ho gaya?
Sarfaraz- 2309 dollar.
Reporter- 2309 dollar US…?
Reporter (continues): Kuch document to nahi dene padenge?
Sarfaraz- Cash.
Reporter- Visa, passport dene ki zaroorat to nahi hai?
Sarfaraz- Nahi nahi.
Reporter- Kuch aur accha rate mil jaye?
Sarfaraz- Best hai, best rate hai..
Reporter- Poora hoga 2 lakh..billing wagera nahi chahiye hamien, document wagera?
Sarfaraz- Kuch nahi.
[This exchange makes it clear how easy it is to bypass all formalities in the shadowy world of street forex. What we see here is informal finance thriving in plain sight.]
Tehelka now met another money changer of Nizamuddin Area. His name is Arfin Rajput, running his forex business with the name of Nodal Forex. Again, Arfin Rajput readily offers to convert Rs 5 lakh into Euros—no passport, no visa, no bill required. He quotes a precise rate, does the calculation instantly, and confirms there’s no need for any formalities. Everything is handled in cash, no questions asked.
Reporter- Euro mil jayega Euro?..5 lakh Indian currency ka?
Arfin- Mil jayenge.
Reporter- Kya rate hai.
Arfin- Rs 58.70 paise.
Reporter- 58 rupee 70 paise..Rs 58.70 paise?
Arfin- Haan.
Reporter- 2 lakh Indian currency ka kitna ho gaya.. sorry 5 lakh ka?
Arfin- Ye ho gaye tumhare 5065 (five thousand sixty five).
Reporter- Rs 5065…document to nahi chaiye kuch?
Arfin- Naa.
Reporter- Passport visa ki zaroorat to nahi?…bill bhi nahi chahiye hamey.
Arfin- Naa..
[What this brief exchange shows is how openly large forex deals happen outside the legal net. A system meant for scrutiny seems to function comfortably without it. The absence of even basic documentation underscores how normalised such illegality has become.]
We all remember the infamous 2015 Forex Scam, in which the CBI arrested several people, including employees of Bank of Baroda and HDFC Bank. In 2017, in a major case of trade-based money laundering—also dubbed the “Foreign exchange scandal”—the CBI initiated a probe against 13 private companies and unknown bank officials for sending foreign remittances worth around Rs 2,253 crore under the guise of bogus imports during 2015–2016. In 2024, the Reserve Bank of India (RBI) issued a list of 75 unauthorised forex dealers duping customers.
Tehelka’s two-part investigation, triggered by the Pahalgam terror attack, has exposed the smuggling and Hawala networks operating through foreign currency dealers in Delhi’s Nizamuddin area—right under the nose of the local police station. The money changers caught on Tehelka’s spy camera claimed to be RBI-authorised but were clearly operating outside the legal framework, even when the country was on high alert following the Pahalgam attack. It is known that customers often prefer such dealers to avoid paperwork and deal only in cash. These money changers operate illegally in what is euphemistically called the “black market”—a space that, as the name suggests, harbours everything from tax evasion to terror financing. A blind eye to this parallel economy only deepens the risks we conveniently pretend don’t exist.
