Three persons were today arrested as police in Mahabubnagar district claimed to have thwarted an attempt by outlawed CPI (Maoist) to convert old currency to the tune of Rs 12 lakh with new notes by unlawful means.
Rs 12,01,400 in old denominations and three mobile phones were recovered from the trio, police said.
The SHO of Makhtal police station in the district received a tip off that some persons suspected to be having links with anti-social elements were trying to convert old currency into new currency with the help of a post office employee in Manthangode village in Makhtal mandal, Mahabubnagar police stated in a release.
The SHO immediately rushed to the village along with a team and found two persons in the house of Satyanarayana Chary, Branch Post Master with cash bundles of Rs 500 and Rs 1,000.
"On questioning, the other two persons revealed their names as Trinadha Rao and Sidharth, but refused to divulge details of the source of the money," it said.
Rao and Sidharth, who work for a Hyderabad-based engineering company at Charla forest area in Bhadradri-Kothagudem district, were allegedly threatened by Maoists.
According to police, they were also made to meet some men in olive green uniform in the forest who demanded money.
"After one month, again one unknown person came and handed over a letter allegedly from the CPI (Maoist) district committee secretary of Khammam. In that letter he (Trinadha Rao) was asked to come alone to Maoist Martyrs Stupa in Bheemavaram village in Chhattisgarh on October 28. It also gave a warning not to reveal the matter to police," as per the release.
Rao was made to pay money, it said.
"So, Rao carried the currency in both old and new and went there on (November) 12. Three masked men came with weapons and took the money. (They) also gave him two bags and told to convert money into new currency in denomination of Rs 2000.
"When Rao refused, they convinced him to support the movement and to cooperate with a promise to give a sizable share from that amount. He agreed and came back. The bags had Rs 12 lakh in old denominations," the release said.
Sidharth sought the help of Satyanarayana Chary of Manthangode village for converting the currency, but the attempt was thwarted by police, it said.
A case was registered under relevant sections of Telangana State Public Securities Act against the trio.
After preliminary investigation, they were arrested by Makhtal police today and being remanded in judicial custody.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)