The city police arrested a five-member gang involved in printing and circulating fake currency notes of Rs.500 denomination and recovered notes valued at Rs.26,500 from their possession. A computer monitor, CPU and colour printers were also seized from them.

The gang members included Majji Ramachandra Rao (38), Bandi Chandrasekhar (25), Bandarupalli Sanjeeva Rao (40) and Mudili Venu belonging to Krishna district and Dasari Satyanarayana belonging to Khammam district. Ramachandra Rao and Satyanarayana were habitual offenders in circulating fake currency, the police said at a press conference on Sunday.

Based on a information provided by a fruit vendor at Ibrahimpatnam, who got suspicious after they gave him a fake note of Rs.500 for purchase of half kg apples, the police arrested the gang members. West Zone Assistant Commissioner of Police V.N.V. Satyanarayana told reporters that the fake currency notes carried no water mark print of Gandhiji's bust and also these notes were very thin without having the security line running through them.

He said that the gang members were not circulating the fake notes in big shops and malls where it would be detected because of fake note detection machines. Small shops, roadside fruit vendors were their target. They usually buy products worth around Rs.100 and get change for the remaining amount. The people could notice the difference between original and fake notes by keenly looking for the thickness of the paper used and also seeing the water mark.