Four persons were arrested and counterfeit notes in the denomination of ₹2,000 were seized on Saturday.
Following specific inputs that a gang was trying to circulate counterfeit notes in the market, plain-clothes policemen were deployed in suspected locations for the last three days by the Rajadhani police.
Police spotted four suspects near Kadir Narasingapuram Animal Husbandry Office and after enquiry, searched their homes and seized the counterfeit notes. The police also found that the gang had a link with a Coimbatore native, who is lodged at the central prison there.
The arrested persons were identified as Kumaresan, 35, of Andipatti, who lived in Tirupur, Vasanthakumar, 31, and Palanikumar, 24, of Thoppupatti and Paulraj, 31, of Jakkampatti - all from Theni district.
They were produced before a JM court, which remanded them in judicial custody. A police officer said that they have registered a case against Sundar, 38, who is suspected to be the mastermind and is in Coimbatore prison.