A paper scrap merchant from Ulhasnagar was arrested for allegedly possessing counterfeit notes of the demonetised currency and depositing them in a bank on Sunday, said police.
Pankaj P Kori, 30, went to a leading public sector bank on Thursday and deposited cash amounting to Rs1.05 lakh in the now-defunct Rs500 notes. After verification, 11 notes were found to be fake.
Subsequently, an offence under IPC section 489 (B) (Using as genuine, forged or counterfeit currency-notes or bank-notes) of the Indian Penal Code was registered against him. The case was transferred to the Thane Nagar police station on Saturday.