Counterfeit notes worth Rs 3,500 and a fake currency printing machine were found during the raid on the house of a dismissed policeman in the city on Sunday.
Acting on a tip-off, the Malamaruthi police swooped down on the house of Jnaneshwar Goni, who was earlier with the District Armed Reserve.
Preliminary investigation revealed that Goni and another person by name Sunil Doddamani were involved in circulating fake currency. Goni had been dismissed from service on the charge of his involvement in the fake currency racket.
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