A section officer posted in the legal wing of the Rajasthan assembly was arrested on Sunday for allegedly printing fake notes of a purported value of about Rs 9 lakh.
Sunil Singh, 39, did this because he was under pressure to pay for a house he had bought, deputy commissioner of police (west) Sharat Kaviraj said.
The alleged crime came to light as some of the counterfeit notes were not printed properly and a majority of them had the same serial number.
Station house officer Manoj Gupta said that a person by the name Suresh Kumar Vijay, whose house Singh had purchased, had complained that the latter gave him fake notes. Vijay told the police he had received fake 1,000-rupee notes whose face value was Rs 8.91 lakh.
Earlier a cheque signed by Singh on behalf of Vijay had bounced. It was then that Singh agreed to pay in cash.
During interrogation, Singh supposedly said he used a simple printer for the purpose, and took this path because he was "desperate".
Singh's father had earlier worked as law secretary in the assembly.