Police confiscated counterfeit currency with the face value of Rs152,000 from New Bus Park in Kathmandu on Saturday night.

Acting on a tip-off, police raided the rooms of Som Bahadur Kunwar and Hitmat Miya of the same flat and seized the fake money.

On Friday, Kunwar was arrested by the police in Bhojpur for using counterfeit currency to pay a hotel bill.

“The hotel owner informed us after he suspected the authenticity of the note. We then arrested Kunwar, who later confessed to having more fake currency in his flat. We informed the police in Kathmandu about it,” DSP Keshab Kumar Thebe, chief of the District Police Office Bhojpur told the Post.

“We have also arrested another person with Kunwar in connection to the crime. The identity has been kept confidential as we suspect that the racket might be bigger,” said Thebe.

Miya is still on the run and search for him is going on, said Inspector Mohan Bikram KC.