The Chandigarh police has arrested a woman from Amritsar involved in the fake currency racket.

The alleged, a widow named, Savinder Kaur (58), hails from Bhawani Nagar area in Amritsar and is suspected to be an ISI (Inter-Service-Intelligence) agent. The police has seized fake currency worth Rs 4.8 lakh from her.

The arrest followed the interrogation of Yudhvir Singh (alias Yodha) who was arrested on July 31. Singh is the linchpin in the racket.

It is learned that Savinder had visited Pakistan on multiple occasions in the past, as part of religious groups. However, police has failed to recover her passport, which is told to be in the custody of Pakistan high commission.

"The woman did not know that Yodha Singh has been arrested by the UT police. She was caught in a trap based on Yodha Singh's information," explained Bhupinder Singh, Station House Officer, Sector-31 police station, Chandigarh.

The police has recovered currency notes in denominations of Rs 1,000 and Rs 500 from her, which she brought three months back.

The convict used to buy fake currency worth Rs 1 lakh for Rs 40,000 from her counterparts based in Pakistan. These notes were sold for to Yodha Singh for Rs 55,000, who in turn sold them for Rs 65,000.

These fake notes were put into circulation in adjoining areas, except Amritsar and neighbouring states.

The convict has been confirmed to be dealing in fake currency since last one year.