The trio was caught by a team led by Inspector of Task Force G V Ramana in a decoy operation conducted near Mahatma Gandhi Cancer Hospital, Deputy Commissioner of Police M Srinivasulu said.
The accused were identified as Kotamohanti Venkatesh, the gang leader, Maddila Laxmi and Rakoti Musalayya, all residents of Railway New Colony in the city.
The DCP said six bundles of papers appearing similar to real currency notes, a liquid bottle, three cellphones and a motorcycle were seized from their possession.