Vasheem Alvi complained that he has been duped of Rs 1.90 lakh and told police that he met Raju at Sarai Kale Khan.
Raju offered him US Dollar 20 and asked for Indian currency in return. Alvi obliged and later Raju asked him if he could exchange 1,134 notes of USD 20 for Rs two lakh, DCP (Shahdara) Nupur Prasad said.
On March 21, they met near Shamshan Ghat in Geeta Colony to exchange the currencies.
He exchanged Rs 1.90 lakh and Raju handed him over a packet. Later, Alvi found a dollar wrapped on a soap cake, she said.
With the arrest of the two, police claimed to have worked out six cases of cheating and recovered Rs 2.3 lakh in cash, USD 11 and four mobile phones.
The two accused said they are residents of West Bengal but they were found in touch with people in Bangladesh, a senior police officer said.
Their Bangladesh connection and how they procured dollars is being probed, he said.
"They cheated many persons on pretext of exchanging dollars with the same modus operandi," she said.
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