Jammu: A suspected cross-border narcotics smuggler was arrested with fake Indian currency worth Rs 10 lakh and two kgs of heroin near the Line of Control (LoC) in Jammu and Kashmir's Poonch district, police said on Sunday.

Mohammad Zaffar Khan, a resident of village Dabbi, was caught while attempting to cross the LoC fence gate in Balakote area of Poonch on Saturday evening, a police spokesperson said. Terming the arrest as a "major success", the officer said 400 counterfeit notes in denomination of Rs 2000 and 500 along with the heroin was recovered from Khan's bag.