Udham Singh Nagar | Police have arrested two persons and recovered genuine and counterfeit currency notes with a total face value of Rs 4.54 crore here, busting a fake currency racket operating in the region, officials said on Thursday.

According to police, the accused allegedly used a unique ploy to deceive people. In several seized bundles, genuine Rs 500 currency notes were placed on top, while fake notes -- with "Children Bank of India" printed on them -- were stacked underneath.

Following a tip-off that some suspects had gathered with a large amount of cash, a team from Gadarpur police station raided a kiosk near Panchpuri Gularbhoj on Safta Farm Road.

Two men were detained from the spot. A search of the premises led to the recovery of a black-and-white striped bag containing 157 bundles of fake Rs 500 notes, they said.

While some bundles had genuine notes on top, several others consisted entirely of counterfeit currency, they added.

The arrestees have been identified as Muntiyaj and Manoj Kumar, both residents of Udham Singh Nagar. A case has been registered against the duo at Gadarpur police station.

Bazpur Circle Officer Akhilesh Kumar said a thorough investigation is underway to ascertain the exact nature of the crime the accused intended to commit with the fake currency.

The police are now investigating the source of the counterfeit notes, the network of the gang, and the specific areas where they planned to circulate the currency, the officer said, adding that the criminal history of the accused is also being verified.