According to police, Rajesh was booth president for BJP's Yuva Morcha - youth wing of BJP.
At the time of the raid on Thursday, police said, they found fake currency notes of 2000, 500, 50, 20 - the total amounting to Rs 1,37,590, including fake currency of the value of over Rs 2700 found in his pocket.
"We seized a cannon colour printer, plain sheets of paper and fake currency notes from his house during the raid. The role of Rajesh and his brother has been confirmed in fake currency racket," Thrissur District Police Chief N Vijayakumar said.
The raids were conducted as part of Operation Kubera, to crackdown on illegal money lenders.