The duo--Salman Khan Haroon Khan (21) and his brother Farooq Khan (32) -- were apprehended from Mini Mata Nagar, a slum in east city area, yesterday, they said.
The fake notes were in the denomination of Rs 500 and Rs 1000, police said.
Police also recovered a number of weapons, including a country made pistol, swords and knives, from them.
Also, cops are on a look out for one of their accomplice, who is absconding.
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