Three individuals were arrested from Srinagar's Ashai-bagh area with over Rs 13 lakhs of demonitised currency, sources said on 12 December.
During a surprise checking at Ashai-bagh on Monday night, police apprehended Bashir Ahmad Khan, Showket Ahmad Bhat and Bashir Ahmad Bhat, residents of Batmaloo, Pampore and Panthachowk respectively.
They seized demonitised currency of Rs 13,63,500 from their possesion.
The cognizance was taken under the Specified Bank Notes (Cessation of Liabilities) Act, 2017.
The accused will be presented before the competent court today for judicial determination.
Further investigation is on.