Mangalore: The police today (July 28, 2004) claimed to have busted a fake currency racket, with the arrest of six persons circulating counterfeit notes in Dakshina Kannada and the neighbouring districts of Karnataka.

Police have gained "conclusive evidence" of a larger network of fake currency racket, H S Lokesh Kumar, Additional Superintendent of Police told reporters in Mangalore.

As many as ten accused were involved in the racket, he said, adding, fake currency notes with a total face value of Rs 73,500 had been seized. The arrested included a former Mandal Panchayat chief Muliya Thimmappa and his son, he said adding the accused were printing the notes in the denomination of Rs 500 and Rs 1,000.

With an intention to cheat the Rubber Growers Cooperative Society, Thimmppa hatched a plan and took a loan of Rs 50,000 and returned the loan in one month with fake currencies, he said.

A car worth Rs eight lakh and two mobile sets were also seized from them, Kumar said. The police are making efforts to nab four other culprits.

All the six arrested had been remanded to judicial custody in Sullia, he said.