Two people were arrested with demonetised notes with a face value of Rs 1.99 lakh, police said on Saturday.
Jagdish Raioyani and Budha Dhrangiya were arrested Friday night from Yagnik Road in Rajkot by the Crime Branch following a tip-off and demonetised notes with a face value of Rs 1.99 lakh were seized, said inspector H M Gadhavi.
"Raioyani, a native of Morbi, and Dhrangiya, who hails from Jamnagar, have told us that the scrapped currency was given to them by one Amrut, also a resident of Morbi. Efforts are on to apprehend him," H M Gadhavi said.
He said that further probe into any possible racket of people exchanging demonetised notes with valid ones was underway.