Central Crime Branch (CCB) sleuths busted a fake currency racket yesterday and arrested two men for smuggling notes of Rs 1,000 and Rs 500 denominations from Bangladesh and circulating it in the city.

Acting on a tip-off, a team, led by Assistant Commissioner of Police BN Nyamegowda, arrested Bisrath Sheikh and Saddam Hussain, who hail from West Bengal, and recovered fake currency worth Rs 22 lakh from them.

Upon interrogation, the accused confessed that they had obtained the consignment from their contact on the Indo-Bangla border.

"The duo revealed that the currency is being printed in Pakistan and routed to India via the Bangladesh border. The accused were offered Rs 1 lakh fake currency for Rs 40,000 in actual cash," Nyameowda said.