They said Mohammad Naushad, Noor Mohammad and Iqbal were arrested from Pahadi area with fake currency notes with a face value of Rs 5,300.
They had 10 new fake Rs 500 notes and six fake notes of Rs 50, they said.
The accused were trying to make purchases with the fake notes when one of the shopkeepers informed the police, following which the accused were held.
"They had got the fake notes in Delhi," said ASI, Pahadi Police Station, Dharmpal, adding they have been arrested under relevant sections of IPC.