Agartala, July 28: One person was arrested when police in Bishalgarh subdivision of West Tripura busted a foreign exchange racket yesterday and seized foreign currency worth at least Rs 10 lakh.

The suspected kingpin of the currency racket, identified as one Milan Begum, is absconding.

Police sources here said Bishalgarh subdivisional police officer Manik Das had received information that a woman belonging to a minority community, based in Boxanagar in neighbouring Sonamura subdivision, was operating a currency and gun-running racket.

The SDPO tried to trace the woman, but failed. Yesterday, however, information reached Bishalgarh police station that a woman, named Milan Begum, was camping in nearby Durganagar village and had a large cache of foreign currency in her possession.

Das raided the house with a combined force of policemen and Assam Rifles jawans.

At the sight of the team of securitymen advancing towards the house, Milan Begum fled through the back door.

Sources said the team seized $ 400 and currencies of Kuwait, Syria, Qatar, Dubai and France. The total is valued at around Rs 10 lakh in Indian currency.

Sahed Mia, a 40-year-old accomplice of Milan Begum, was arrested at the spot.

During interrogation, Mia confessed that he was a member of the racket operated by Milan Begum, who sold foreign currency to people migrating abroad.

Sources said all nearby police stations have been put on alert to apprehend the kingpin.

After a fence was erected on the Indo-Bangladesh border, such crimes in nearby areas have registered a sharp spurt. Most of the smugglers, who were earlier involved in illegal movement of commodities across the border, have started running currency rackets or are engaged in arms trafficking.

Police sources here said a meeting would be convened soon to devise a strategy to combat such crimes.