Irshad Ahmad, Afzal Ahmad and Yakub were arrested last week from Inderlok Metro Station for possessing fake currency notes with the face value of about Rs 1.59 lakh.
The currency was reportedly supplied by the counter links of Pakistan to some agent in Bangladesh and being smuggled into the country through the porous Indo-Bangladesh border in West Bengal, Deputy Commissioner of Police (North District) I B Rani said.
Acting on a tip-off that two suppliers of fake currency are often seen near Inderlok metro station, police swung into action and arrested Irshad and Afzal.
"Indian fake currency notes in the denomination of Rs 500 were recovered from their possession," she said.
During interrogation, Afzal disclosed that he comes from a very poor family and he came in contact with Yakub from Uttar Pradesh.
"Afzal and Irshad pumps fake currency notes brought by Yakub and his men in the market of Delhi. He supplies fake currency to some select people," the DCP said.