Thiruvananthapuram, July 24: Taking serious note of the reports of circulation of counterfeit currency through hawala transactions and the fraudsters' anti-national links, the Kerala Government today announced its decision to constitute a special police squad to investigate such deals.

Hawala transactions worth thousands of crores of rupees took place every year in Kerala, Home Minister Kodiyeri Balakarishnan told the State Assembly.

The State intelligence wing had reported, after analysing the recent hawala activities, that there were strong reasons to believe that these gangs had connections with anti-national elements and the counterfeit currency mafia, he added.

Counterfeit currency notes, which are printed both in India and abroad, constitute a portion of money being circulated through the hawala network, he said.

Mr Balakrishnan said a monitoring cell, comprising Additional Director General of Police (Intelligence), ADGP (Crimes) and IGP (Internal Security) would be constituted soon. The Cell would function in coordination with the Central Government agencies.

He said the intelligence wing would be strengthened and its activities extended to district level to deal with such cases.

The Minister said there were provisions under the Goondas Act to take hawala dealers into preventive custody.

UNI