Police on Sunday arrested three Indian nationals  from Dharan, Sunsari on charge of smuggling counterfeit Indian currency. Mohammad Istiyak, 25, from the Indian state of Bihar was arrested with fake Indian banknotes of 500 denomination. 

A local shopkeeper in Dharan-3 informed police as Istiyak gave him the fake currency after purchasing Gudkha. Police immediately detained Istiyak and arrested two of his friends later based on his statement. 

During interrogation, Istiyak told police that he and three others had been involved in the smuggling of fake Indian currency in the area.

Deputy Superintendent of Police Rameshwor Poudel said they confiscated another 15 fake Indian banknotes of 500 denomination from the two.

Investigation is under way into the case, said Poudel, adding that they were searching for the other suspect involved in the smuggling.