The special task force (STF) of the state police seized fake Indian currency notes (FICN) with a face value of Rs 2.85 lakh from Malda on Wednesday night.

One Nasiul Sheikh, 34 was arrested by the STF after the fake notes were found on him during a search at Baliharpur village under Kaliachak police station.

All the fake notes were in denominations of Rs 500, sources said.

Sheikh was produced in court on Thursday.

"He was produced in court and taken into remand for further interrogations," said a senior police official.

Primarily, it is being believed that Sheikh had stored the counterfeit currencies in order to circulate them through a network of peddlers.

"Currently, he is being grilled to reveal more names that are involved in the FICN peddling racket," said a police officer.

Police have observed that while fake Rs 2,000 notes were being intercepted in the past, there has been an increase in the recovery of fake Rs 500 notes in recent times.

“We hardly come across any fake Rs 2,000 notes nowadays,” said a police source.

Many believe that peddlers find it easier to circulate fake notes of lesserdenominations.