Shillong, July 1: East Khasi Hills police today arrested three persons, two of them women, and seized fake currency notes valued at Rs 1.43 lakh.

The seizure was made after a police team carried out checks on some suspicious vehicles on getting information that fake currency notes were being circulated here.

A press release issued by East Khasi Hills superintendent of police M. Kharkrang said a car was intercepted at Lad Smit on National Highway 44 this afternoon and fake currency notes amounting to Rs 1,43,500 were found inside the vehicle.

The police seized the fake notes packed in a few bundles and arrested three persons - Chemi Phawa, 26, of Myntdu village in West Jaintia Hills, Teimon Chyrmang, 40, of Jalaphet and Lorisloma Siangshai, 37, of Wapung Skur, both in the East Jaintia Hills.

The bundles contained Rs 500 and Rs 1,000 notes. The white Celerio (ML05-M03976) has also been seized.

On June 20, the police had busted a gang involved in duping people who believed that they could earn money through unfair means. The gang would convince the defrauded persons in some areas of Ri Bhoi district that paper could be converted into real currency by using a chemical.

Four persons were arrested in connection with the incident.

The police said the arrested persons have admitted that at least four persons from Nongstoin and Nongpoh in Meghalaya, Tinsukia in Assam and from Arunachal Pradesh have been defrauded.

However, the persons cheated on by the gang are yet to file an FIR.