Agartala, Sep 8 - Fake currency with the nominal value of Rs.500,000 was seized from a Tripura village bordering Bangladesh and two men were arrested, officials said here Tuesday.

The seizure and arrests were made during searches in Sobhapur village along the India-Bangladesh border, 60 km west of Agartala, Monday night by a joint team of Assam Rifles troopers and Tripura Police.

'Acting on a tip-off, the counterfeit notes in Rs.1,000 and Rs.500 denominations were recovered Monday night from Sobhapur,' said Tripura police spokesman Nepal Das.

The forged notes were concealed in a bag that was hidden in the bush.

Senior police officials, who were interrogating the arrested duo, suspect that the fake currency might have been supplied from across the border through a clandestine channel.

The police in Mizoram and Tripura in August and November last year busted an international fake currency racket and arrested six people, including a Myanmar national and a local bank manager.

The six were arrested from Mamit district of Mizoram and North Tripura district, and fake currency notes with the nominal value of Rs.