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The accused was identified as Talib, an air-conditioner technician. He was arrested in Kanth police station area, the police said on Thursday.
During the ongoing vehicle checking drive because of the upcoming elections, police spotted a man standing near the Jaswantpur culvert on Wednesday. When he was searched, he was found carrying 60 fake notes of Rs 100 denomination, Superintendent of Police (City) Sanjay Kumar said.
During interrogation, the accused told police that he is an air-conditioner technician and often travels to Delhi in private buses to buy AC parts, the SP said.
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Talib has been arrested and raids are going on to nab others involved, Kumar said.
The Uttar Pradesh Assembly polls will be held in seven phases between February 10 and March 7. The counting of votes will take place on March 10.