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In a recent search, security forces in Abujhmar area of Narayanpur district of the state have managed to recover documents maintained by the Nelnar area jantana sarkar for 2016-17, which shows how demonetised note of Rs 500 and Rs 1,000 were successfully exchanged by Maoists.
Speaking to ANI, Awasthi said, "Balance sheet has been recovered in Narayanpur encounter, where six naxals were killed, mentions their expenses in last one year, also says they had 500s and 1,000s when demonetisation took place."
"Naxals have converted old notes by creating pressure on innocent villagers and contractors working in naxal areas.
It has also been noticed after demonetisation that security forces are much more entering most affected areas in Bastar," added D M Awasthi.
"During demonetisation, forces were very active and a lot of money was recovered. Naxals were not able to exchange much of it. Naxals threatened to kill people because of which people are forced to give them money," said Awasthi.
As per police data, the Chhattisgarh Police have seized more than Rs 1.05 crore banned notes across the Naxal hit state.