Mahender Yadav alias Tanduri (36), Ranvir alias Ravi (33) and Bajrang Prasad Mishra (42), confessed to have cheated more than 100 people across Delhi, they said.
Acting on a tip-off, the accused were arrested by the police on October 5 from near Presidium school, Sector-16-B in Dwarka.
During a search operation, three bundles of papers cut into the size of a Rs 500 note, with an original Rs 500 note placed on top of the bundle tied in handkerchiefs were recovered from their possession, the police said.
They used to make fake bundles of Rs 50,000 and Rs 2 lakh by placing an original note on a bundle of papers, Deputy Commissioner of Police (Crime) Bhisham Singh said.
The police said one of them used to find a target and tell the person that he has stolen a huge amount of cash from his owner and wished to deposit it in a bank.
However, since he did not have a bank account, he would request the victim to give him some cash or jewellery and keep the money, they said.
With their arrest, police claimed to have solved 10 cases.
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