The Kollam Crime Branch CID on Thursday arrested a 52-year-old man, Krishnankutty alias Premier Sasi, from Shanghumughom in Thiruvananthapuram in connection with a counterfeit currency case registered by the Kottiyam police in July.
Sub-inspector M. Shilesh Kumar, who arrested Krishnankutty, said the accused had been involved in the racket for several years.
The case was exposed when a woman paid a bill given to her at a private hospital in Kottiyam.
The hospital clerk noted two counterfeit currencies of Rs.500 denomination and informed the Kottiyam police.
On questioning, the woman told the police that she had borrowed it from a relative.
When the police questioned the relative, he said he had got the currency from Krishnankutty on exchange of $200.
The police raided Krishnankutty's house and seized another eight counterfeit currencies in the Rs.500 denomination, but the latter went absconding.
The investigation of the case then went to the Crime Branch CID.