Hassan (61) and Samidurai (49), who were found moving around suspiciously with a bag at the bus stand here were arrested yesterday, they said.
A search revealed that they were carrying fake currency worth Rs six lakh with them.
After questioning, police personnel seized fake currencies in Rs 2000, Rs 500 and Rs 100 denominations to the tune of Rs. 1,36,60,000 from Samidurai' house.
Police said a team had been keeping a watch at important places in Tirunelveli district following complaints that a gang was circulating fake currency notes.
The two could be part of a bigger gang, police said, adding they were being questioned regarding the places where they had circulated the fake notes.
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