"On a tip-off, a Santro car on its way to Kathua was stopped at Ghagwal by our patrol team. During search of the two occupants of the car fake currency notes worth Rs 20,500 were recovered from their possession," Ghagwal police station SHO Sanjeev Chib said.
He said the two accused have been identified as Gurav Gulati and Gurinder Singh, both residents of Jalandhar in Punjab.
Both the accused are under custody and have been booked under various sections of the IPC, police said, adding further investigations are underway.