The police personnel on Thursday evening seized the counterfeit notes from the Changunarayan area in Bhaktapur.
A joint team of police personnel deployed from Police Circle Thankot and Police Range Changunarayan held fake notes of Rs 1.5 million.
The police have held nine persons for further investigations into their alleged involvement in the transaction of fake notes.
Superintendent of Police (SP) Prajit KC said that the fake notes were held from a raid carried out by the police personnel in a rented room of Arjun Subedi, 40.
The arrested include Arjun Subedi, 40, Balephi Municipality-7, Sindhupalchowk, currently staying at Changu Budhathoki village, Milan Bhandari,21, Shiva Bhandari,32, and 23-year-old Shrikrishna Bhandari of Sunkosi Rural Municipality-6, Sindhupalchok and 26-year-old Sushil Karki of Pepsicola, Kathmandu have been arrested.
Similarly, Parwati Nepali from Sarabal Rural Municipality-1 of Nawalparasi and now staying in Kathmandu, 27-year-old Sagar Acharya from Badagaun Rural Municipality-2, Gulmi and now staying at Samakhusi, Kathmandu, 23-year-old Arjun Budha from Achham and now staying in Matatirtha, Kathmandu and Yubaraj Rai 24-year-old from Jhapa, currently staying in Samakhusi, Kathmandu.
SP KC informed that the police confiscated one color printer, one computer, 12 mobile phones, and four scooters from the room.
He further said that all the materials including the recovered fake notes were taken to the Police Circle Thankot for investigation.