Cuttack, Sept. 28: Police have found vital leads in connection with circulation of fake currency notes in various parts of the state.

A senior official said the cops had busted a manufacturing unit operating at Nemaisapur in the Kandarpur police station limits on the outskirts of the city. One Tarakant Mohanty, who was arrested and produced before court today, was operating it.

Kandarpur police seized 18 fake currency notes, including 13 notes in the denomination of Rs 500 and five fake 100 rupee notes. The manufacturing unit was busted during a raid conducted on Mohanty's residence yesterday. Three printers, ink bottles, paper cutter, zink-ball pen, seal, wood thinner, glass plate and other articles have also been seized.

It is suspected that a well-organised fake currency racket is now operating in the state with parts of Berhampur, Jagatsinghpur and Cuttack turning into the circulation hubs.

"A special team has been formed to conduct a detailed investigation into the racket that has links to Berhampur," said deputy commissioner of police Sanjeev Arora. He said preliminary investigation revealed that Mohanty had links with some other traders and manufacturers in Cuttack and Berhampur.

In 2014, a major fake currency racket had been busted in Berhampur, and Rs 2.95 lakh counterfeit currency notes of Rs 100 and Rs 50 denominations were seized.

Mohanty will be taken in remand and interrogated Arora said. In 2012, the cops had arrested Mohanty with a few fake notes from Chandikhole. The police were keeping tabs on Mohanty's activities, and acting on tip-off, yesterday's raid was conducted.

On May 31, Malgodown police had arrested three persons for their alleged involvement in circulation of counterfeit currency of 100 rupee denominations in various parts of the city.

In another development, the CBI today conducted simultaneous raids at 20 locations, including the offices and residence of office-bearers of Green Ray International Limited, a money deposit collection company.

The Ponzi firm allegedly swindled Rs 500 crore from around 1.5 lakh investors in the state. Searches are being conducted by CBI at 20 places including Khordha, Baleswar, Mayurbhanj, Keonjhar, Bhadrak, Jajpur and Nayagarh districts, and its sister concerns. Sources said around a dozen of cases were registered at several police stations in the city against the company.

The company had started its operations in the state in 2004, but the government sealed their offices in 2013 following which, it defaulted on payments to its investors.