Aggarwal said that during interrogation, the miscreants had told police that the main supplier in Nepal procured these fake currency notes from Singapore and Pakistan.

'We have got many vital clues during the interrogation. In the next few days we are hoping to unearth more such smugglers active in the region and make more arrests,' Aggarwal said.

Chandigarh police had also arrested a widow from Amritsar town in this state Sunday and seized fake currency with the face value of Rs.480,000 from her possession.

However, Nawanshahr police said that it is too early to claim any link between these two arrests.