The police arrested Rakesh, Yuva Morcha's Kodungallur S N Puram area president, with fake notes of Rs 1.5 lakh and the printing machine on Friday.
Meanwhile, the police are searching for Rajeev.
The cops also recovered a printer, scanner and a laptop used for making fake notes from his premises. The fake currency of denominations ₹2000, ₹500, ₹50 and ₹20 was found from here.
While taking to a local media outlet the police said that they have arrested BJP's Yuva Morcha leader Rakesh Erachery Rakesh (31), son of Harshan at Sree Narayanapuram, in connection with the seizure.
During interrogation Rakesh said he brought a new colour printer two weeks back.
An economics graduate, Rakesh is stated to be adept in computer programs. Though he does not have any job, Rakesh used to lead a luxurious life, according to local people.
The BJP made high claims that demonetisation will curb the black money and flush the fake currency notes from the Indian market and the incident of its own leader printing fake notes questions the claimed impact of the note ban. "The police should investigate the sources of this funding". The brothers were also involved in some criminal cases too, and those came to limelight after this.
However, police are suspicious regarding the involvement of Rakesh in this deed.