COIMBATORE: The Erode police busted a fake currency racket with the arrest of three persons on Sunday. Police also seized counterfeit currency notes for Rs 1.28 lakh in the denomination of Rs 2,000, Rs 500, Rs 200 and Rs 100.

Police said S Govindaraj, 42, from Anthiyur, the mastermind behind the racket is a habitual offender and was arrested twice before in 2018 and 2021 for printing and circulating fake notes.

A police team from Bangalapudur station was involved in a vehicle check near Thaneerpandal, when two persons riding a two-wheeler attempted to escape on seeing cops.

However, police managed to nab the duo, identified as Prakash, 35 from Nehru Nagar and Santhosh Babu, 40 from Kallipatti, who run a cracker shop. They seized three fake notes in the face value of Rs 500 from the duo.

Based on their information, the police nabbed Govindaraj from Bhavani near a bus stop and found wades of fake currencies dumped by him in a garbage bin near his house.

A colour printer, lap top, papers and ink bottles used to print fake notes were seized from him.

Police said Govindaraj, who worked as a mechanic, took to printing currency notes due to lack of adequate income. Police seized around Rs 1.26 lakh from his house.

Prakash was suspended recently while working in Nesavalar co-operative society and Santhosh was running a grocery shop, where he circulated the fake currency to the public.

Police said the trio used the same serial number in all the currency notes, which in fact led to their arrest. Further inquiries are on.