Three persons, including a government schoolteacher in Bihar, have been arrested near New Delhi railway station for alleged involvement in circulation of fake Indian currency notes, police said on Thursday.

Fake notes with a face value of Rs 3.7 lakh —  in denominations of Rs 1,000 and Rs 500 — have been recovered from Arjun Sharma, 33, Parma Shah, 31, and Satinder Singh, 30.

The counterfeit money trail has been traced to Bihar’s West Champaran district. The fake cash was being supplied to people in Delhi and NCR region for a long time, said Ravindra Yadav, additional commissioner of police (crime and railways).

“The notes are being smuggled into the country through porous Indo-Nepal and Indo-Bangladesh border,” said Yadav.

The gang was, however, busted after a tip-off that its members would come near Ajmeri Gate side of New Delhi railway station on March 11 to deliver a huge consignment.

“The information was further developed, and a trap was laid,” Yadav said.
Arjun and Parma were arrested at the Ajmeri Gate side of New Delhi railway station around 12.30 pm.

On their search, Rs 2 lakh in denomination of Rs 1,000 were recovered from Arjun, while Rs 1.5 lakh in the denomination of Rs 500 were recovered from Parma.
Their interrogation led to the arrest of Satinder on March 13, and Rs 20,000 in denomination of Rs 500 were recovered. A police team was later sent to Bettiah in West Champaran in search of the main supplier, Nagina.

“Raids were conducted at several places in Bihar, but Nagina has been absconding. Efforts are being made to identify and nab other members of the gang,” Yadav added.

Arjun was selected as a teacher on contract basis with Bihar education department in 2010, and was teaching in a government school.

A case has been registered with crime branch police station.