A fake currency minting unit, operating from a rented house at Sridharnagar in the town was busted by police on Monday and two persons were arrested in this connection.
Acting on a tipoff, a team of the Paralakhemundi police led by SDPO TP Patra conducted a raid on the house and seized counterfeit currency notes of Rs 500 amounting to Rs 2.5 lakh, chemicals,paper and other materials used in manufacturing fake currency.
The arrestees were identified as Karunakar Parida (39) of Mahadeipur village in Gajapati district and Santosh Majhi (40) of Basundara village in Srikakulam district of nieghbouring Andhra Pradesh.
Meanwhile, the duo is being interrogated to ascertain, who else are involved in the racket and other information.