Police said five people, who arrived in Jamnagar by train, were making big purchases with the fake currency and even managed to exchange some of the notes for genuine currency worth Rs 28, 000.

The B-Division police said that based on reports that some migrants were entering the city with fake currency, they detained Irfan Sheikh (22) and Yunus Sheikh (19) from Ranjitnagar Market on Tuesday evening, on suspicion.

They later recovered fake notes to the face value of Rs 1 lakh from Irfan and Yunus.

During interrogation, the accused revealed the involvement of three other persons, who had also come to Jamnagar along with them.

The police later arrested Bhuneshwar Sahu, Rahim Sheikh and Bechu Shiekh, all 20. In all, the police recovered fake currency worth Rs 1.24 lakh.

“Preliminary investigation revealed they came to Jamnagar only a few days back,” said a police officer.