Police on Wednesday busted a fake currency racket with the arrest of six persons involved in printing and circulating counterfeit Nepali currency in Dharan, Sunsari.

Raj Rai, Prakash Bhandari, Bishwo Rai, Dipesh Shakya, Min Kumar Rai and Manish Rai of Dharan-13 were arrested on charge of printing fake notes, said police.

Police swung into action receiving complaints that the people have been swindled by fake notes of Rs 1,000. Police have also confiscated drugs from the arrestees. A police team deployed from the Area Police Office, Dharan, caught them red-handed while they were printing the counterfeit Nepali currency.

According to DSP Rameshwor Paudel of the Area Police Office, Dharan, the team has also seized a note printing machine and papers used to print notes.

Shakya is the owner of Shantipath-based Quality Colour Lab in Bhanuchok.