The accused Sayar Lakhaji Mali (41) and Jaimin Vhora (34) were arrested yesterday and scrapped currency notes worth Rs 1.60 crore, in Rs 1,000 and Rs 500 denominations were seized from them, the official said.
"Based on specific information that the duo was coming in a vehicle to exchange the scrapped notes, a trap had been laid yesterday at Lala Lajpatrai Road near Haji Ali Beat Chowki," he said.
Mali, a small-time businessman from Malad and his friend Vhora, a real estate agent from Borivali, were arrested by the team before money could be exchanged, the officer said.