Acting on a tip off, a special police team conducted checking at Lad Smit area in the afternoon following which the trio were nabbed with the fake notes, they said.
The arrested persons were identified as Narilona Siangshai from Wapungskur and Chemi Phawa from Mihmyntdu in West Jaintia Hills district and Teimon Chyrmang from Jalaphet in East Jaintia Hills district, East Khasi Hills district police chief M Kharkrang said.
From their possession Police have recovered fake currencies with face value of Rs 1,33,500, he said.