Sleuths deployed by the Central Investigation Bureau of Nepal Police have arrested 10 persons in possession of demonetised Indian banknotes with a face value of IRs 1.8 million from separate places in Kathmandu Valley.

The suspects have been identified as Bimal Gurung, 34, of Dhading; Santosh Khatri, 32, of Kathmandu; Nawaraj Basnet, 44, of Sunsari; Rishi Giri, 44, of Dhading; Kaiya Chaudhary, 57, of Kailali; Raju Thapa, 43, of Dhading; Rameshwor Chaudhary, 35, of Bara; Narendra Bahadur Bohara, 31, of Kathmandu; Kumari Karki, 40, of Ramechhap; and Kumar Karki, 42, of Ramechhap.

They were caught on Wednesday as they were planning to spread the demonetised Indian notes of 500 and 1,000 denominations in the Nepali market, the CIB said in a statement on Friday.

The accused were produced before the Department of Revenue Investigation, Lalitpur, on Friday for further action under the Foreign Exchange Act.

The Indian government demonetised IRs 500 and IRs 1,000 notes in December last year as part of a crackdown on rampant corruption and counterfeit currency.

Following the move, Nepalis have been unable to exchange them for legal tender.