Three persons who tried to circulate colour-xeroxed notes of Rs.500 were caught by the police today in Ooty.

Based on a tip-off that that a different kind of notes is being circulated, a special police team monitored the movement of Prabhu, a small-time businessman for the past few days, police said.

He was caught when he tried to exchange one such photocopied note at a petrol bunk. Further inquiries revealed the involvement of Devaraj, a photo studio owner, and Ravi, a tourist guide. The investigations led to the seizure of 100 such fake notes and a colour Xerox machine from the studio.

The trio was produced before the court and remanded to custody at Coimbatore Central Jail.