Sunil Rai, a resident of Birtamod in Nepal, was arrested with fake notes with the face value of about Rs 53,000 West Sikkim Senior SP, DB Giri said.
The accused had checked into a hotel in Gyalshing on Wednesday night and the fake notes in the denomination of Rs 500 were kept there, he said.
Rai was produced before court and remanded to police custody for five days.
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