Three persons, suspected to be Students Islamic Movement of India (SIMI) activists, were on Thursday arrested from the New Housing Board colony here, police said.
The trio were arrested after police conducted raids in the area and fake currency notes of face value of Rs 80,000 and four mobiles were seized from them.
One of the arrested belongs to Kayamganj in Uttar Pradesh, while the other two were from Morena, police said.
According to Superintendent of Police, the arrested persons could be having links with Pakistan's ISI and police would seek their remand for comprehensive interrogation to find out their connections.
Raids were conducted following information that Naajmia, a resident of Kayamganj (UP) and Pappu alias Sudhir Jadaun and Rajbir Gurjar (Sahrana) were hiding in a house.
During interrogation, Naajmia had revealed that fake currency from Pakistan via Nepal come to Morena.