The racket came to light after the arrest of two persons who attempted to exchange some fake notes at Keezhakarai Branch of the State Bank of India in the district a couple of days ago.
Officials were stunned by the "texture of the fake note which looked like a genuine note" and felt that it should have printed in some government press, police said.
Muneez was arrested at Pamban near here today.
DSP of Keezhakarai Maheswari said they had arrested Yasser Arafat and Syed Ibrahim of Keezhakarai and one unindentified person on Thursday last.
Police said a 16-member gang was behind the racket and they had already smuggled in from Sri Lanka fake notes with a total face value of Rs.Six lakh and circulated it in Kerala. Some notes were allegedly printed in Pakistan.
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