Kasaragod: Police have seized five sacks of fake currencies of the demonetised Rs 1,000 notes from a house at Badiadka in Kasaragod.

The house belongs to one Shafi, who rented it out to two persons, said Badiadka sub-inspector K P Vinod Kumar. "The house was unoccupied. We are yet to identify them," he said.

Acting on a tip-off, a police team led by Vinod Kumar raided the house at Mundiyathadka around 5.30 pm on Thursday.

"We found five sacks with the banned Rs 1,000 notes. Almost all notes are fake," he said.

The police have not finished counting them or checking the authenticity of all the notes. "We found many bundles with only white papers sandwiched between two fake notes," he said.

"Going by the face value of the fake notes, it may come to around several crores of rupees," said the officer.

Police suspect the notes might have been used by real estate players to dupe people by putting up a show of wealth.

The notes have been submitted to Judicial First Class Magistrate Court - II Kasaragod, said the officer. No case has been registered.

On November 8, 2016, Prime Minister Narendra Modi demonetised all Rs 1,000 and Rs 500 currency notes with the stated objectives of fighting terrorism, counterfeit notes and promoting digital transactions.