"Fake currency of the face value of Rs seven lakh and one Tavera car have been recovered from their possession last evening," SP (Rural) Arun Kumar Singh said.
The gang members, hailing from Gwalior, would allure people that they will get double the sum of money if deposited with them and would later return fake currency notes, he said.
"They were attaching real currency notes on the top and bottom while in between it was all fake currency," Singh added.