Calangute police are interrogating Naik, who was arrested on Sunday after three accused arrested with the fake notes disclosed his connection.
A senior police officer stated that the involvement of more policemen in the racket cannot be ruled out at this juncture. “We are likely to get further leads after Interrogation of Naik”, he said.
The 2006-batch PSI has been remanded to four days police custody in the matter. Police spokesman said that investigation in this case is still going on and nothing can be said at this juncture about the nexus with policemen.
Police had recovered fake Indian currency notes worth Rs 2.77 lakh hidden in an unused toilet flush tank at an office in port town of Vasco, last week.
The breakthrough in the case came after police arrested Aditya Yadav alias Chintamani from Vasco and Hemant Chodankar from Baina on Tuesday. Third accused was arrested subsequently.