A special team of Nepal Police arrested the three men -- Mohamad Minulla, Sohail Mohamad, both Pakistani nationals and Basir Miya, a resident of Bara district in southern Nepal -- from a hotel in New Road in the heart of the capital city.
Fake currency with a face value of Rs 29,500 was seized from them. The currency was being trafficked to India through land route, Jaya Bahadur Chand, chief of Kathmandu Metropolitan Police Circle said.
They have been sent to police custody and further investigations are on.