Mumbai crime branch has arrested a man alleged for circulation of counterfeit currency notes in the system.

The convict, Sevaram Patel aged 30 worked as a salesperson in a wholesale cloth store in Kalbadevi (Mumbai) and is said to have additional modus operandi for circulating fake currency.

"Whenever Patel's employer would ask him to make payment to their clients, he used to mix fake currency of Rs 20,000 in genuine currency amounting to Rs 1 lakh. Patel would withdraw Rs 20,000 from the original notes. He has so far mixed and circulated fake currency amounting to Rs 4 lakh. The rest of the Rs 4 lakh in fake notes has been seized,'' explained inspector Mangesh Pote.

The arrest follows the detention of four persons by the crime branch involved in same fake currency racket on 21st of this month.

The police confirmed, "We have recovered around Rs 4 lakh from Patel. He told us that in last one month, he has circulated fake notes worth Rs 4 lakh in the market."

"We are now looking for two of Patel's associates-Rajesh Purohit and the kingpin Ismail-who are in Nepal and take orders from their Indian counterparts,'' said Deven Bharti, commissioner (Mumbai crime branch) who is also looking into the case.

It is suspected that the gang has already circulated fake currency amounting between Rs 1 crore and Rs 1.5 crore in the system through its activity over past six months.

Patel was named during interrogation of Narnaram Purohit, who was arrested earlier by the police. He also confirmed that fake currency amounting to Rs 8 lakh has been supplied to Patel.

However, it is difficult for the police to trace the actual convicts who are operating Nepal, Bangladesh and Pakistan, outside the border limits.

The counterfeit currency put into circulation uses high quality original paper and follows detailed printing pattern. It is suspected that these notes were printed in some government printing press based in Pakistan.

In wake of increasing circulation of fake currency in the system the government of India has appointed a high-level committee to look into the matter and suggest appropriate change in the exiting security features of the banknotes.