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The police later found that the man was printing the notes in his own house.
The man identified as Harish M Bhovi from Malali village in Kundagola taluk works as a driver.
Bhovi was printing the fake currency notes using a computer and printer in his house. He was reportedly helped in his illegal work by another man from Malebennur in Harihara taluk.
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After searching his house on Monday the police seized a total of 213 counterfeit notes worth Rs 1.20 lakh and the printer.