A paper scrap merchant from Ulhasnagar township in the district has been arrested for allegedly possessing counterfeit notes of the demonetised currency and depositing it in a bank, police said on Sunday.
Pankaj P Kori (30) went to the Ulhasnagar branch of a leading public sector bank on November 24 and deposited cash in the now defunct Rs 500 notes worth Rs 1.05 lakh. After verification, 11 notes were found to be fake, they said.
Subsequently, an offence under IPC section 489 (B) (using as genuine, forged or counterfeit currency-notes or bank-notes) was registered against him under zero category with the Ulhasnagar police station on October 25.
The case was transferred to Thane Nagar police station on Saturday for further probe and Kori was arrested, police said.