The official and the constables are attached to Kothrud Police station here in the city.
Their orders for dismissal were issued by Commissioner of Police Rashmi Shukla yesterday.
As per the police records, the officer and the constables had seized demonetised notes of Rs 500 and Rs 1,000, amounting to Rs 20 lakh from a businessman on February 2.
However, later reports surfaced in a section of media that the team had actually seized more notes and the amount was under-reported.
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"During the inquiry, we found that the team had seized Rs 66 lakh from the businessman, however, they reported only Rs 20 lakh," said DCP (zone I) Sudhir Hiremath.
He added that at the end of the inquiry, they (sub-inspector and the constables) were held guilty and now they have been dismissed from the department.
The PSI and other four constables who have been dismissed from the services have been identified as Vikram Rajput, Ajinath Shirsath, Ashwjeet Sonawane, Sandip Rithe and Hemant Hendre.
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