Fake currency of face value of around Rs 3 lakh were also recovered.
Police said another gang was busted with the arrest of two men along with counterfeit notes of the face value of around Rs 1 lakh.
According to the Crime Branch, the gangs used to exchange fake notes at half the price of original currency. The recovered notes are of very fine quality and difficult to detect without sophisticated testing equipment.
During interrogation, he said one Raheem alias Salman and his wife Nazira Begum bring these currency from a supplier in West Bengal who gets it through Bay of Bengal route, police said.
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He used to procure these notes, from an agent of Pakistan in Murshidabad, police said.
"In order to avoid detection, the gang uses children between 10-12 years of age as carriers. These minors are made to do their bidding because they have been brainwashed. They are given drugs in small quantities and thus induced to become drug addicts.
At the instance of Amjad, Salman was also arrested from Nawada Metro Station.
In the second incident, Crime Branch arrested Madan Chander (24) and Sanjay Thakur alias Goli (27).
"During interrogation of the duo, it was revealed that FICN are poured in Indian markets through Bangladesh. The total consignment of FICN is worth Rs 97,500 and all of it is in denomination of notes of Rs 500, said a police official.