"We have arrested Asif Alam Parmar and Mukthiyar alias Diwan from Jamalpur area," Special Operation Group Police Sub Inspector C B Gamit told reporters. "We are also probing an inter-state angle," he added.
Police have so far recovered counterfeit notes with a face value of Rs 19,500 from the accused, Gamit claimed.
The racket came to light last week when a boy was arrested with 13 fake notes of Rs 1,000 denomination. His questioning revealed that he and his mother, Shahin Sheikh, were involved in circulation of fake notes. Asif Alam Parmar, who was arrested today, is Shahin's brother.
"He and his mother had received the fake currency worth Rs 1,00,000 from an unidentified person in Surat in return for Rs 50,000 in original money," the officer claimed.
Shahin has confessed that she had handed over the cash to her brother Asif Alam Parmar, he claimed.
"Shahin has been previously arrested for allegedly killing her lover, Devang Joshi. She got bail from Gujarat High Court, before getting arrested in this case," Gamit said.