Malappuram: Police on Sunday seized counterfeit currency to the tune of Rs 10 lakh from three men in Kondotty here.
The arrested were identified as Pandikkad native Amir Khan, Karuvarakundu native Moideenkutty and Thuvvur native Basheer.
On a tip off, police had been keeping eyes on the gang before intercepting the car they were ferrying counterfeit currency.
The counterfeit notes were in the denominations of 500 and 2000.
Police also seized a printing machine from them. The gang has distributed the fake currency in several places in the state, and police started further probe in the case.