"Two people originally hailing from Rajasthan were arrested yesterday from a hotel near Kalupur railway station with fake currency notes with a face value Rs 4.20 lakh," Crime Branch Joint Commissioner of Police (JCP) A K Sharma told reporters here.
"The origin of the fake currency racket was from Vadodara Central Jail and the Special Operations Group (SOG) to whose custody, those arrested have been handed over, is probing how the racket was not noticed by jail officials in Vadodara," Sharma said.
Four hundred duplicate notes of Rs 1,000 denomination and forty counterfeit notes of Rs 500 denomination were seized from them, the police said.
The racket was allegedly being operated from Vadodara Central Jail by one Jayant Pateliya, who was also previously nabbed in the distribution of counterfeit currency.
During interrogation, Ratansinh told the police that his younger brother Shankarsinh, who is lodged in the Vadodara Central Jail, came in contact with Pateliya. During his visit to jail to meet his brother, Ratansinh befriended Pateliya, who convinced him to join the racket of circulating fake currency notes to earn quick money.