The Vadodara police busted a fake currency note racket and arrested three persons from the Pratappura area of the city on Thursday night.

According to the Navapura police, the accused, belonging to the Gorwa locality, had scanned eight notes of Rs 100 denomination in a computer and were about to circulate the same in various areas.

Sub-Inspector A K Parmar said a police informer gave the tip-off about fake notes around 11 pm on Thursday. “We arrested the main accused — Nazir Mohammad alias Salim Abdul Bashirkhan Pathan, when he was trying to buy something from a trader in the Pratappura locality,” he said.

Parmar added: “After his interrogation, we found he had two accomplices, Bharat alias Krishna and Rafiqkhan Pathan. They had helped him scan notes at his residence in the Gorwa area on R V Desai Road near Shaktikrupa Circle. Later, we arrested the two and recovered fake currency notes to the face value of Rs 34,700 from them.”

The police suspect that the accused have already circulated Rs 37,400 in various denominations across the city. “During their interrogation, they said that fake notes in the denominations of Rs 100, 500 and 1,000 have been circulated,” added the police officer.