Shimla, Sep 25 - Three people were arrested in Himachal Pradesh's Kullu district with fake currency amounting to Rs.36,000, police said Friday.

'Three people were arrested Friday from Bijora for possessing fake currency worth Rs.36,000,' Additional Director General of Police I.D. Bhandari told IANS.

He said the arrested men belonged to Amritsar in Punjab. He refused to reveal their identity as the matter is under investigation.

'The currency notes were of Rs.500 denomination. Initial investigations reveal they were here to exchange the fake notes,' he said. Kullu is a district headquarter town, some 250 km from here.

The Kullu district has long been notorious for cultivation of high-quality cannabis, which attract a large number of smugglers.