Bareilly (Uttar Pradesh), Sep 17: The Uttar Pradesh Police have arrested two men from Uttarakhand for circulating fake currency notes in the Bahedi area of Bareilly district.

The police have also recovered 897 fake currency notes in denomination of Rs 100 from the accused who belong to Udham Singh Nagar district in Uttarakhand.

The accused, who were arrested on Thursday, have been identified as Shafiq Ahmad and Daulat Ram.

The accused were caught exchanging counterfeit by paying 30 per cent in original currency notes from a supplier in Uttarakhand.

Police have booked them under sections 489-B (using currency notes as genuine) and 489-C (possession of forged or counterfeit currency notes). The police said that they will take the remand custody of the accused to trace the other members of the gang.

Additional Superintendent of Police Rajkumar Agarwal said, "The accused said that they were acquiring the counterfeit currency from Uttarakhand. We have shared the details with the intelligence agencies to check if there is a connection with any terrorist outfit."

The additional SP also said, "Multiple teams have been sent to Uttarakhand to find the kingpin. We are also taking the support of local police. The accused will be sent to jail now, but we will apply for their remand custody."