The police on Sunday arrested a 36-year-old man from Sirumugai on charge of possessing counterfeit currencies.

The arrested has been identified as M. Logesh, a native of K.N. Palayam road near Sathyamangalam in Erode district.

The police said that Logesh had been residing with his aunt near Sirumugai. The aunt had used currencies kept by Logesh at the house to make payments to a milk vendor and to a grocer.

According to the police, the currency paid by the aunt was detected as a counterfeit and was rejected by a cash deposit machine of a bank when the milk vendor attempted to deposit it along with other notes.

The Sirumugai police were alerted about the incident and they found that Logesh’s aunt had given the note to the vendor. The woman’s house was searched on Sunday and the police recovered 63 and nine counterfeits of ₹500 and ₹200 denominations respectively, said the police.

When questioned, Logesh claimed the notes seized from the house were among the fake currencies that went undetected by the police in a counterfeit case registered by the police in Erode district. He brought the notes to his aunt’s house and she was unaware that they were fake currencies, said the police.

Logesh was arrested and sent to judicial remand on Sunday.