Commissioner's Task Force (Central Zone) nabbed Mohammed Arif and Inam-ul-haq, who had allegedly procured the currency -- in denomination of 1,000 and 500 -- from West Bengal, and were going to circulate it in Hyderabad, police said.
Additional Deputy Commissioner P Rameshaiah said acting on a tip-off, Inam-ul-Haq was arrested at Secunderabad Railway Station after he got down from a train from Malda.
Mohammed Arif, who came to receive Haq at the railway station, was also arrested. Two others, including one Ghouse, who were to circulate the fake notes were yet to be arrested, police said.