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Central Crime Branch police officials, based on a tip-off, raided the rented house of Shameem and seized four SIM boxes, several cellphones, computers, Wi-Fi routers and modems.
Shameem confessed to operating the illegal telephone exchange during the interrogation.
He used more than 500 SIM cards to route international calls through Voice over Internet Protocol (VoIP) to make it look like local calls incurring losses to network providers.
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Police are also searching if any call centre on contract with any foreign company was using the illegal telephone exchange.