Acting on a tip-off, police intercepted the car at Kherwadi in suburban Bandra last night and seized the defunct notes, Deputy Commissioner of Police, Zone-8, Virendra Mishra said. 

The scrapped notes were in the denominations of Rs 500 and Rs 1,000, he said.

The four persons, all employees of a private finance company in suburban Andheri, were arrested following the seizure, the DCP said. They wanted to exchange the old currency notes with the new ones, Mishra said. 

The Income Tax department was also alerted about the seizure, he said, adding that an investigation was on in the matter.