An unattended bag in Nashik led to a bomb scare on Monday and the entire state of Maharashtra was put on alert as it happened amid a gunfight following a terror attack in Punjab's Gurdaspur district.

A bomb disposal squad examined the bag, found on Mahatma Gandhi Road, in the afternoon but did not find any explosive.

However, the authorities have reportedly asked people of Nashik to stay alert, apparently in the wake of Punjab terror attack.

Earlier, reports suggested that a live bomb was recovered from MG Road.

The bag was recovered hours after some terrorists, disguised as army officials, launched a terror attack in Gurdaspur, killing at least eight people, including three civilians.

Punjab superintendent of police (detective) Baljeet Singh was among the five policemen who were martyred in the encounter with the assailants. After almost 12-hour long gunfight, the security personnel killed all the three terrorists.

Also Read: LIVE Updates on Punjab Terror Attack

In view of the Punjab terror attack early in the morning, intelligence agencies sounded an alert in four prominent cities of Maharashtra, including Mumbai. 

"Intelligence agencies have sounded a high alert for Mumbai, Pune, Aurangabad and Nagpur cities. Intelligence agencies have told us that there should be high security for a few days in places like malls, railway stations and cinema halls as there could be a possible terror attack in one of these cities in the coming days," Minister of State for Home Ram Shinde told PTI.

All the units of the Mumbai police have been asked to be on alert. "All our units in the state have been alerted and told to keep a tab on every suspicious person or group," state anti-terrorism squad chief Vivek Phansalkar said.

The Nagpur police have already beefed up security in the city suspecting possible terror attacks as 1993 Mumbai serial blasts convict Yakub Memon is scheduled to be hanged on 30 July in Central Prison of the city.

Meanwhile, Delhi has also been put on red alert and security has been beefed up within the premises of the Parliament.