A raid was carried out by the Delhi Police's Crime Branch yesterday at the accused's house in Shastri Nagar area and 89 fake notes were seized, they added.
On a tip-off about counterfeit currency being printed, a team was constituted and a raid was conducted.
Imran Khan was arrested from a house in Shastri Nagar and police also seized a printer and computer that were being used to print the currency, said a senior police officer.
The accused also said that Michael was supposed to come there to collect the notes yesterday but somehow did not turn up.
The paper used for printing the fake notes was thick and the currency did not have the thread line and the watermark, the police said.
Police are questioning Khan to identify the other accused and establish the trail of the fake currency.