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The e-mail, received by Indore police, warned about major terror strike in the cities on Monday, police said.
Police are trying to find out the origin of the e-mail by deplyoing services of cyber experts. The sender of the mail could not be identified so far.
It also carries a cellphone number, but efforts to contact on it proved futile as the call to the number remained unanswered, they added.
The mail claimed that major terrorist strike will be carried out in Indore and Ujjain on July 21, specially at the historic Rajbada in Indore.
Police, however, have not ruled out that it may be an act of some mischievous person, but they are not taking any chance and have deployed the bomb disposal squad to search the Rajbaba and adjoining area.
Security has been beefed up at the railway station, bus stand, airport and crowded places in view of the threat, they added.
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