KATHMANDU: A youth has been arrested in possession of fake Nepali notes of Rs 135,000 face value, from Gongabu of Kathmandu on Monday.

Deepak Neupane (20), a permanent resident of Bageshwori-7 of Nuwakot, currently residing in Nepaltar of the Capital, was arrested with fake notes of denomination Rs 1,000.

A staffer at a Bafal-based insurance company, Neupane had produced the counterfeit notes by photocopying at his office, according to police.

Meanwhile, police raided his office and confiscated other fake notes, a colour xerox machine, a mobile set and a pair of scissors.

Neupane has been remanded under the Muluki Ain for further investigation.