Mumbai Based Dealer Exposed Selling Fake Coins and Banknotes

[Bimat]

Take note, it's a fake

Fake ancient currency notes and coins on sale at a shop near CST, threaten to dilute numismatists' collections. Here's what the Mumbai Mirror team discovered...

Posted On Monday, May 23, 2011 at 03:16:05 AM

If you have a penchant for collecting ancient coins and currency notes, you'd better arm yourself with a discerning eye to tell a fake apart from a genuine one.

Seems there are a dime-a-dozen such fakes floating around, and gullible numismatists often get taken in. Or so we, at Mumbai Mirror, were told by someone who made an anonymous call to our office to tip us off.

The caller goaded us to do something about how people, who are foxy at image-editing software, are diluting an ancient hobby.

"It's a shop near CST... opposite Café Shaheen on DN Road," the caller said. "It's a thriving market of fakes which pass off as ancient coins and notes."

Before we could ask much, the line was disconnected. We took the tip. On Saturday, we sauntered into Global Coins and Stamps at the location that the caller had given us.

Setting out to buy fakes

Under an awning outside the shop, is a slew of coins. Feigning interest in the coins on display, we made small talk with the salesman who was ready with his salesman talk.

He led us two flights of stairs, into the main shop which has a large number of stamps neatly pasted on a foolscap-sized chart. Lined up in sections, huge display boards make the stamps conspicuous. It was a hint of pride that the salesman proudly told us that the shop mostly deals in coins and stamps.



A shop near CST that was found fleecing amateur numismatists by selling fake coins and notes

We looked at a currency note with the inscription 'East India Company'. "Absolutely authentic..." his spiel began, peppered with names of countries and ancient royalty. "Price only Rs 3,000, okay?"

A bit of haggling helps. It's down to Rs 2,500. We pick up another currency note and wow at three coins. The notes are replete with watermarks and pictures of Her Majesty. The coins bear portraits of King George IV and the Queen. A Re 1 coin dated 1970. A Rs 50 note bearing serial number 786786 - a number considered holy.

The salesman has made the bill. "It's Rs 6,000," he tells us. We bought three notes and four coins for Rs 3,100. Had we not bargained, it would have pinched our wallets for at least Rs 9,000. And thereon, we set upon the task to verify our prized possessions.

The salesman refused to identify the shop owner or part with his boss's contact number. Another man said he was the 'custodian' of the shop who has been asked to 'take care' of the shop for two days in its owner's absence.

We left behind our calling cards, but did not receive any call from the owner.

With the three notes and four coins, Mumbai Mirror visited currency expert Farokh Todywalla, who has been collecting ancient currency notes and coins since 1967. He has also conducted auctions of coins, tokens, medallions and paper money since 22 years.

Without even having to take out a microscope to verify finer details of the note, he told us that all the fare we got from Global Stamps and Coins was fake. He then pulled out his catalogue of pictures of an array of original coins and notes to match what we had just bought.

"Only a novice will buy these," was Todywalla's verdict. "Such coins are in demand during Diwali to be used as an offering. As most people do not know much about them, they get hoodwinked."

Currency expert Asif T Zumkhawalla, author of the Standard Guide to Coin Collecting, said coin forgeries are increasing because of a limited supply and mintage of coins and the growing number of coin collectors. "There is an increase in demand for a limited variety of coins, and laws made by nations prevent export of coins considered archaeological treasures. This fans such forgeries," said Zumkhawalla.

Spotting fake Coins and notes

Instead of Reserve Bank of India, the fake note has  'East India Company' printed on it. The paper is a printout, not an ancient, frayed currency note.




The 'watermark seal' is sharp an a print. Even the best preserved note would have a part of it faded, this one doesn't. An original note, unless fresh out of print, is not as bright and white as this appears.

The coin marked as '1970' was minted later and has sbeen tempered with. Moreover, a 1970 coin is heavier and, back then, the digit '7' was scripted differently.

The other two coins are bright and crude, designs are not sharp. Todywalla (holding the coins) doubted that they contain any silver. Even a newly minted coin bears the impression of the Emperor or Empress and would not be so crude.

Dummy's guide to verification

Every year, RBI mints coins of various denomination from 25 paise to Rs 10. A coin of each is preserved for posterity.

These are available with the RBI for verification. RBI officials, who are experts in this field, help verify such coins. Also, the country's apex bank has a museum where all coins ever minted are displayed.



Source: Mumbai Mirror

[Figleaf]

Such dealers are not just frauds, they help destroy people's interest in the hobby.

Why is it that there is no mention of the word "police" in the article?

Peter

[Coinsforever]

I find the article misleading and full of contradictions.

Mumbai mirror reporters visited to dealer instead of approaching RBI or Government authorities.............

With the three notes and four coins, Mumbai Mirror visited currency expert Farokh Todywalla, who has been collecting ancient currency notes and coins since 1967. He has also conducted auctions of coins, tokens, medallions and paper money since 22 years.

Without even having to take out a microscope to verify finer details of the note, he told us that all the fare we got from Global Stamps and Coins was fake. He then pulled out his catalogue of pictures of an array of original coins and notes to match what we had just bought.

"Only a novice will buy these," was Todywalla's verdict. "Such coins are in demand during Diwali to be used as an offering. As most people do not know much about them, they get hoodwinked."

The article indicate RBI has facility to verify fake coins & RBI officials are expert why they first approached a dealer.............. quite contradicting points...............

Hmmmmmmmmmmmmmmm RBI officials are experts ( ??)

Dummy's guide to verification

Every year, RBI mints coins of various denomination from 25 paise to Rs 10. A coin of each is preserved for posterity.

These are available with the RBI for verification. RBI officials, who are experts in this field, help verify such coins. Also, the country's apex bank has a museum where all coins ever minted are displayed.

Cheers

[Bimat]

First of all, who would have informed Mumbai Mirror about the dealer selling fake coins? It must not be a collector-a collector will always inform police first, in case he's having a lot of time to handle the future troubles. So the most probable answer is another dealer; don't forget that a large number of people are dealing in coins and notes these days so they have a tough competition as well.

Secondly, I agree that Mumbai Mirror isn't one of the best news paper/tabloid, they like to create controversies. But it's a fact that there are large number of people who are still selling fake stuff, not just the one mentioned in the article. Or just look at e-bay India, it's flooded with fake Republic/British India fake coins and notes...

Aditya