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The arrests were made during a routine checking on Saturday night in which Ankur Kumar Bind, Surendra Sagar Singh and Kunal Yadav were arrested, they said.
Police said they recovered fake notes with a face value of Rs 14 lakh, Rs 1.17 lakh cash, paper used for making fake currency, printing machine and mobiles from the accused.
During the interrogation, the accused said they used to print fake notes and distribute it in several districts, police said.
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Police are probing the matter and trying to trace their links and prospective buyers of these fake notes.