The Sri Sathya Sai district police on Monday busted a fake currency racket and arrested five persons for allegedly cheating unsuspecting people by promising ₹10 lakh in counterfeit currency for every ₹1 lakh in genuine cash.

The Hindupur police said the accused allegedly used fake currency notes and posed as police officials to intimidate victims and make the counterfeit bundles appear genuine. Their modus operandi was to lure gullible people to a specified spot under the pretext of exchanging goods. While the deal was under way, two members of the gang, posing as police officers, would raid the location and seize both the original and counterfeit currency, sending the “victims” away with a warning and later distributing the original cash among themselves.

Acting on a tip-off, police reportedly intercepted the gang near Konduru Cross in Lepakshi mandal on Sunday afternoon and seized fake currency with a face value of nearly ₹50 lakh.

The arrested were identified as K. Venkatesh (34), G. Chandramohan (26), Nagaraju (60), K. Balaji (33), and P. Upendra (23). They belong to Tirupati, Chilamathur, Anantapur districts, and neighbouring Karnataka.

Police also seized an SUV, a cash-counting machine, a baton, handcuffs, khaki trousers, and a police-style cap that were used for the operation. The search is under way for one more accused who is absconding.

Superintendent of Police (SP) S. Satish Kumar appreciated the police team for swiftly nabbing the racket.