An illegal money transfer racket was busted here Sunday with the arrest of four people and seizure of unaccounted cash to the tune of Rs 2.54 crore from them, police said.

Based on a tip-off, a police team intercepted two people on a bike and recovered Rs 1.80 crore in cash from them, a police release said. Following inquiry police searched a flat and arrested two more people including a diamond marchant, from whom Rs 74 lakh was confiscated.