The Mumbai police have seized fake currency notes with a face value of Rs 7 crore after busting an inter-state gang involved in printing and distribution of counterfeit notes, an official said on Wednesday.

Seven persons have been arrested so far in Mumbai as they were caught red-handed with the bundles of Rs 2,000 fake currency notes, an official said.

Acting on a tip-off, the crime branch of the city police intercepted a car at Dahisar Check Post in the suburbs on Tuesday evening. A bag containing 250 bundles of counterfeit currency notes with a face value of Rs 5 crore was found during the search of the car and the four occupants were arrested, the official said.

While interrogating the four car occupants, the police got information about their three more accomplices involved in the fake currency racket.

A police team then raided a hotel in suburban Andheri (west) and recovered another 100 bundles of fake currency notes in Rs 2,000 denomination with a face value of Rs 2 crore from the trio who have also been arrested.

The police have also recovered a laptop, seven mobile phones, Aadhaar cards, PAN cards and driving licences from the gang members.

During the investigation, it came to light that the inter-state gang was operating a racket of printing fake currency notes and distributing them, said DCP Sangramsingh Nishandar, who oversaw the entire operation.

The accused were produced before a local court which remanded them in police custody till January 31. Further investigations are on to unravel the inter-state operations of the gang.

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