Vanishing coins being melted into razor blades

Police in Calcutta think they have solved the mystery behind the Indian city's acute coin shortage, believing the money is being melted down and smuggled to Bangladesh to be turned into razors and ornaments.

'The crisis has been acute for the past three months. On preliminary investigation we have found that at some points on the north and eastern suburb of Calcutta, large amounts of coins are changing hands for smuggling to Bangladesh,' said Manoj Verma, a senior detective with the Calcutta police.

'Either the bags of coins are being directly smuggled to Bangladesh or the metal is being sent across the border after they are melted at some joints around Calcutta.

'We have gathered information that in Bangladesh, metals from these coins are being used to make shaving blades and shining steel ornaments.'

Some police officials said, however, it was difficult to prove the crime unless people are caught in the act of melting the steel coins in denominations of 50 paise (half a rupee), 1 rupee or 2 rupees.

'It is very hard to arrest anyone just because he is collecting coins, as there is no law against that,' said one police officer.

The inspector-general of the Border Security Force, Somesh Goyal, said his officers believed coins were being smuggled across the border, but 'we don't know where exactly and why these coins are going to Bangladesh'.