“Rs 8,85,000 fake currency has been recovered so far from them,” a spokesman said in a statement.
Police said it acted on a tip-off regarding the racket being operated in Srinagar.
“One Arshad Ahmed son of Ghulam Muhammad Kaloo of Nehru Park is one of the key operators,” the spokesman said.
“Acting on the tip off, police laid a Naka at Badyari Chowk. Arshad was intercepted at the naka and fake currency worth Rs 3,500 was recovered from him after his personal search.”
A case FIR No 29/2014 under section 489B, 489C RPC has been registered in Police Station Ram Munshi Bagh.
Police said during the questioning of the accused, it was revealed that he had also deposited some fake currency notes in Punjab National Bank, Boulevard Branch.
“He confessed to have deposited fake currency worth Rs. 60,000 at Cash Deposit Machine (CDM) of SBI Residency Road Srinagar,” the spokesman added.
“Further, it came to surface that the Masood Ul Haq son of Abdul Gani Peer a resident of Khawaja Bagh Baramulla is the main kingpin of the racket.”
Police said Masood has been arrested. “Moreover, 12 persons running the fake currency racket and also recovered Rs 8,25,000 fake currency from them.”