Chandigarh, Aug 2 - Chandigarh city police Sunday claimed to have busted an inter-state gang of fake currency smugglers, allegedly linked to Pakistan's Inter-Services Intelligence (ISI).

Police arrested a widow from Punjab's Amritsar town early Sunday and seized fake currency notes with the total face value of Rs.480,000 from her possession.

'We have arrested Savinder Kaur from Amritsar and recovered fake currency notes with face value of Rs.480,000 from her possession. Rs.200,000 was in the denomination of Rs.1000 notes whereas remaining amount was in the denomination of Rs.500 notes,' Deputy Superintendent of Police (south) J.S.Khira told a press conference here Sunday.

He said the woman was brought to Chandigarh and police suspect that she is an ISI agent.

'She visited Pakistan four-five times in the past as part of the religious group and there is a strong probability that she was bringing this counterfeit currency from there,' he added.

Savinder Kaur, who was staying in Amritsar, 250 km from here, for the last 15 years, is originally from Srinagar.