The raids were carried out on shops at Allipuram and Gajuwaka areas by the City Task Force led by ACP I Chittibabu.
"Police found 1,330 pirated CDs of Telugu and Hindi movies, 95 blue film CDs and seven dumpers (CD manufacturing equipment) and other material," said DCP (zoneI) C M Thrivikrama Varma.
Police arrested SVS Reddy (36), C Srinivas (31) and S Pradhan (56), all locals in the incident.
"The accused would download blue films from foreign websites and sold them at a premium. Similarly, newly-released Telugu and Hindi movies were downloaded from various online sites and converted into CDs," the officer said.
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