RAUTAHAT: Police have arrested two persons for their alleged involvement in smuggling the fake Indian currency from a hotel in Hetaunda of Makawanpur district on Thursday.

The suspects have been identified as Birendra Chaudhary from Madhabini VDC-3 of Sarlahi district and Krishna Bahadur Pulami of Hetaunda Sub-Metropolitan City-7 of Makawanpur.

According to the Makawanpur District Police Office spokesperson DSP Bam Dev Gautam, the duo were caught red-handed while Pulami was bargaining to acquire the fake banknotes from Chaudhary.

Earlier, police were tipped-off about the illegal transactions in the hotel.

Police also seized the banknotes of Rs 400,000 face value in Rs 1,000 and Rs 500 denominations, each denomination making the value of Rs 200,000.

Police said the duo have been detained for further investigation.