Coimbatore : Three youths, two hailing from Kerala, were arrested while trying to exchange counterfeit currency to the value of Rs.500 with a shop keep in Singanallur in the city.

As two youths handed over the currency, the shopkeeper selling chips smelt foul on seeing it and informed police late last evening, police said today.

Police arrested, Bhaskar of Tuticorin, Russel Francis and Elvis Francis (both brothers and from Kerala) are hailing from Kerala and seized two fake Rs 500 notes.

Bhaskar and Russel became friends, when they were serving jail term in Oman in connection with passport problem and after returning back, they started dealing in fake currencies in the city.

Further investigations are on from where they are receiving the fake currencies and any connection with the counterfeit network.