Bhopal: The Government Security Paper Mill (SPM) in Hoshangabad, Madhya Pradesh, has filed a recovery suit of Rs 11 crore against UK-headquartered banknote manufacture De La Rue for allegedly supplying substandard paper for printing Rs 100, Rs 500 and Rs 1,000 notes.The suit has been filed in Hoshangabad district court, say sources. "The paper supplied in 2016 was of inferior quality and the company itself confirmed this after inspection," said Sushil Goyal, SPM's lawyer. This supply was made before demonetisation but it couldn't be immediately confirmed if any of it was meant for the new Rs 500 notes. The case will be heard on March 30, said Goyal.After demonetisation, several political parties had alleged that the Union government was partnering with a banknote manufacturer, security printing, and papermaking company that was "blacklisted" under UPA government and was named in the Panama Papers.In December 2016, AAP's Delhi convenor Dilip Pandey alleged that De La Rue was investigated by CBI in 2010-2011. If the allegations against the company, based on which it was blacklisted was true, the government had seriously compromised national security, Pandey claimed. "If the stated purpose of demonetisation was elimination of fake currency, isn't the government increasing the risk of counterfeits by allowing a blacklisted company to supply paper? The government must come clean on De La Rue and the circumstances under which the company was removed from the blacklist," Pandey had said.He alleged that De La Rue was also investigated by UK's Serious Fraud Office. Following these allegations, finance minister Arun Jaitley and Pandey had a spat on Twitter.On December 6, 2016, De La Rue issued a response to these allegations. "De La Rue categorically refutes the defamatory and malicious allegations about its business published in Indian media. De La Rue is not supplying paper for printing of Indian currency and we are not associated with printing of currency in India at present in any form. De La Rue has received no notice nor are we aware that we are blacklisted in India. De La Rue does not supply currency paper and is not printing currency for Pakistan and would never supply currency paper manufactured for one country to another," said the release.The statement pointed out that the firm is the world's "leading commercial banknote printer", supporting 140 countries. "The company is listed on London Stock Exchange, is a founder member of the Banknote Ethics Initiative and operates to the highest ethical standards. De La Rue will take appropriate steps in India to protect its reputation as the trusted currency printer around the world," it said.

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