Bhadrak, Jan 18: Bhadrak police on Monday arrested the mastermind of a counterfeit currency racket.

The arrested youth has been identified as a resident of Binjharpur area in Jajpur district.

The youth gave a Rs 2,000 note to a shopkeeper buying some sweets. The shopkeeper found the note fake and informed the Chandabali police over telephone.

A police team rushed to the spot and took the youth into custody.

Police later seized fake notes amounting to Rs 7,000 from his possession.

We are interrogating him to find out other members of the racket, said police.