The arrested have been identified as Javed (32), Mohd Ayub (31) and Vinod (32), DCP (Special Cell) Sanjeev Yadav said.
The first to be arrested were Ayub and Vinod from Anand Vihar on August 21 with fake notes with a face value of Rs six lakh, the DCP said.
Their interrogation led to Javed, who was arrested from Malda in West Bengal. Counterfeit notes with a face value of Rs 27,000 were recovered from him.
Yadav said Ayub came in contact with one Furkan, who was allegedly running a fake currency racket, in 2006. Furkan is currently lodged in Malda jail at West Bengal.
"Ayub started procuring and circulating counterfeit currency. In 2006, he was arrested for the first time. After getting bail two years later, he fled and did not attend court hearings. Ayub used to procure counterfeit notes from one Rabul Hussain who is currently lodged in a Kolkata jail.
"In February, he again started circulating fake notes and contacted Javed, who is the son of one Hussain. He procured counterfeit Indian currency from a contact in Bangladesh. Ayub then circulated the same in Delhi, UP, Haryana and NCR region," the officer said.
Ayub's friend Vinod used to circulate fake currency in the market, he added.