Puttur: The town police have arrested three persons and seized Rs 50 lakh worth demonetized currency notes in the denomination of Rs 500 and Rs 1,000 in an operation at Mani near Puttur town on Saturday.

The arrested have been identified as Valalu resident Mohammed Siraj (34), Abdul Sharik (29) and Nisar (28). The accused reportedly nabbed when the cash was being transported in a car to meet a person at Uppinangady to exchange the notes with new currency.

The currency notes seized reportedly handed over to the trio by a Madikeri based business man for exchange. Police investigation is under progress.