Dubai: Two Indians, an Iranian and a Pakistani were arrested after Dubai police busted a fake Indian currency racket in this west Asian metropolis.

Police here arrested the four-member gang Aug 5 and recovered fake Indian currency with a notional value of Rs.2 million ($46,500).

According to local media reports, police jumped into action after receiving a tip-off that the gang was looking for a broker to distribute the fake currency.

An undercover police officer then managed to establish contact with one of the gang members.

"He (the undercover police officer) managed to convince the gang member that he had a buyer for the fake currency. The gang member produced fake currency of Rs.1,500. The currency was forged using advanced technology," a Dubai police source was quoted as saying.

The police officer then struck a deal to buy Rs.1 million in fake Indian currency by paying 60,000 dirhams (Rs.705,743).

When the Indian gang leader Raj Bankilla came with the counterfeit currency notes, he was caught red-handed and fake notes worth Rs.1.1 million were recovered from him.

Thereafter, the police tracked down the other gang members and recovered Rs.900,000 more in fake Indian currency notes.

The others arrested have been identified as Jaya Chandran, an Indian, Hussain Ali Habib, an Iranian, and Pakistani national Jol Khan.