Close on the heels of the arrest of former minister Amit Shah, Gujarat Chief Minister Narendra Modi on Friday said the state has become a battleground for nationalist versus anti-nationalist forces.

"The war between nationalist and anti-nationalist demons has started in Gujarat. But remember this is Gujarat, where anti-nationalist forces will be defeated," Modi said while addressing a rally in Palitana town of Bhavnagar district.

"If you think that you can frighten me, you should open your ears and listen, Modi will bow down to the truth and will fight 100 times against anything false," Modi said at a function.

"I want to tell Delhi sultanat (central government), Gujarat is the inheritor of the legacy of Mahatma Gandhi and Sardar Vallabhbhai Patel who provided leadership to win our freedom. Gujarat will win in this war of nationalism and anti-nationalism," he said.

"This country never takes the side of those who stand besides terrorists, those fighting for the rights of demons, anti-nationals and those related with underworld activities," Modi said.

Modi's close aide Shah has been arrested by the Central Bureau of Investigation for his alleged role in the Sohrabuddin Sheikh fake encounter case.

"Since the last eight years, there has been peace and development in the state. They are trying to destabilise the progress of Gujarat," Modi alleged.

"They are jealous of the progress of Gujarat and so they are trying to derail the progress of the state," he said.

Modi on Thursady had said the Congress has already accepted defeat in the forthcoming local body polls and will have to field CBI officers as their candidates.