Agartala, Sep 10 - Paramilitary Assam Rifles troopers arrested three people and recovered fake Indian currency with a face value of Rs.350,000, officials said Thursday.

A police spokesperson said that Assam Rifles troopers late Wednesday arrested three people while they were transacting the counterfeit notes of Rs.500 denomination at Kanchanpur in northern Tripura, 170 km north of here.

An Assam Rifles release said: 'On preliminary interrogation, the arrested people have revealed that this fake Indian currency was brought by them from Bangladesh to sell in various parts of India at the rate of Rs.55,000 per one lakh of counterfeit Indian currency.'

'The paramilitary organisation has expanded and reinforced an effective intelligence network in the northeastern states to unearth the entire racket of circulation of fake Indian currency in the region,' the release added.

A joint team of Assam Rifles troopers and Tripura Police Monday arrested two people and seized Rs.500,000 in fake Indian currency notes from Sobhapur village along the India-Bangladesh border, 60 km west of Agartala.