According to STF sources, Khwaja floated fake currency worth nearly Rs 30 lakh in the Indian market through his five associates, of which three were arrested in the city. On November 17, the STF arrested three Bangladeshi nationals — all alleged members of the Shahid Bilal group. The three Bangladeshi nationals — Md Abdullahil Baki (23), Md Tahidur alias Madhu (27) and Abdur Rehaman alias Nafis Zafar (21) — were arrested by STF from the Babughat bus terminus in central Kolkata.

Baki was involved in a fidayeen attack on the Special Task Force (STF) office in Hyderabad on October 12, 2005 and Rahaman was involved in a terrorist attack on the Patna-Delhi Shramjeevi Express in Jaunpur in UP on July 28, 2005, said Rajeev Kumar, joint commissioner of police, STF.

According to a STF senior officer, Khwaja was involved in a terrorist attack in Ajmer Sharif in Hyderabad and the serial blasts in Hyderabad in October, 2007. “Khwaja has a clear link with the LeT and HuJI. Originally from Hyderabad, Khwaja was trained in Pakistan by LeT commandos. The Shahid Bilal group was specially deployed in the country by the LeT to launch terror attacks and float fake currencies to damage the Indian economy,” said the officer.