Peshawar police on Friday unearthed a counterfeit currency note printing and distribution racket, recovering nearly Rs15 million in fake currency, DawnNews reported.

Police had on Wednesday arrested four suspects after recovering fake currency notes from them which they were trying to smuggle to Punjab, Capital City Police Officer (CCPO) Tahir Khan told reporters at Malik Saad Shaheed Police Lines.

Following an initial investigation, police acted on the indication of the arrested suspects and raided their houses in Peshawar's Bhana Mari, Gulberg and Hayatabad areas and recovered different machines, nearly 22,000 blank papers, 100 currency stickers, six colour printers, cutters, computers and toners that were used to make fake bills.

The total amount of fake currency and prize bonds seized during the raid is a little over Rs15m. Police also recovered two thousand in counterfeit UAE dirhams.

According to the CCPO, the total recoveries made during the raid, comprising fake currency, machines and equipment, were worth Rs500m.

The arrested suspects not only supplied fake currency to other districts of Khyber Pakhtunkhwa but also to other provinces and the Federally Administered Tribal Areas (Fata), the CCPO said.

He said the accused had managed to sell Rs100,000 in fake currency for Rs25-30,000, adding that the suspects will be presented before a local court on Sunday.

SSP Investigation Nisar Khan told DawnNews that police are investigating whether the fake currency was used in any terrorist activities. He said the supplier of paper to the fake currency factory would be arrested soon.