Police seized demonetised currency worth ₹1 crore from a five-member gang at Vadapuram, near Nilambur, on Saturday night.
Santhosh, 43, from Sreekaryam, Thiruvananthapuram; Somanathan, 71, from Muneeswar Street in Chennai; Firos Babu, 34, from Kondotty; Jaleel, 36, from Kondotty and Shaijal, 32, from Manjeri, were arrested.
Following a tip-off, a police team led by DySP M.P. Mohanachandran and Inspector K.M. Biju zeroed in on the gang after a careful surveillance that lasted for weeks. Two vehicles that were used by the gang members were also seized.
Police, on the basis of the revelation made by the arrested gang members, said there were agents at Thrissur and Palakkad for the collection and exchange of demonetized currencies.
More than half a dozen big seizures of banned currency notes were made in the district by the special police team led by Mr. Mohanachandran since the Central government demonetised ₹1,000 and ₹500 currencies.
All seizures were made on the basis of tip-offs.
Police said some people from the district too were involved in a wider racket that specialised in the demonetised currency.