Gandhinagar, Aug 18 - The Anti-Terrorism Squad (ATS) of the Gujarat police is probing Pakistani links of the four people arrested in Godhra town last month with fake currency nominally worth Rs.10.25 lakh, a home department official said Tuesday.

'It is now certain from preliminary investigations that the fake currency that had been seized by the ATS July 31 had arrived from the Nepal route and the persons arrested have Pakistani links,' the official said here, speaking on condition of anonymity.

The ATS officials have been trying to establish a direct link between those arrested and operatives of Pakistan's ISI, he added.

The ATS will fully co-operate with the union home ministry, which has ordered a countrywide alert on a fake currency racket operating from a neighbouring country, the official said.

The intelligence agencies both at the state and central levels have been coordinating efforts to curb this 'new form of terrorism' aimed at circulating millions of rupees of fake currency across the country using local operatives with links with Pakistan-based operatives, the official said.