The Special Investigation Team of Andhra Pradesh, looking into last month's twin blasts in Hyderabad, is probing whether those arrested in the fake currency racket had any connection with terror blasts.
The city police had busted an intenational racket involving smuggling and circulating of counterfeit Indian currency and seized fake notes with a face value of Rs 2.36 crore on the day of twin blasts on August 25.
The racket allegedly has links with underworld don Dawood Ibrahim.
A youth identified as Satish Viswamber Dattwani alias Sunny was arrested in Mumbai in connection with fake currecy racket and is being interrogaged, Additional Commissioner of Police (Crime & SIT) M Punna Rao told PTI on Thursday.
Satish was arrested for his alleged role and conspiracy in circulating fake Indian currency brought from Pakistan via Dubai, Rao said.
Asked whether the members of the racket had any links with the terror blasts, he said, "We are investiging all angles as some more persons are yet to be traced in connection with the racket."
Satish Vishwambhar Dattwani, son-in-law of a former Maharashtra advocate general, was arrested by Hyderabad police in Mumbai on Wednesday in connection with the fake currency racket.
This was sixth arrest, including that of a UAE citizen Alkaz Khamis Obaid Ali, after busting of the fake currency racket.
Earlier, police had arrested four persons in Hyderabad and two in Kerala.
City Police Commissioner Balwinder Singh had said 10 to 12 persons, including three Pakistanis, were involved in the racket.