A sitting councillor of Kendrapara Municipality and three others were arrested today for allegedly running an extortion racket.
The four had allegedly demanded Rs 6.5 crore in extortion from a private construction company which was carrying out a Rs 320 crore World Bank funded double-lane project of the Cuttack-Chandballi state highway, Kendrapara Superintendent of police, Rabi Narayan Behera said.
The company brought the matter to the notice of the police and senior district administration officials.
"Though the councillor Hibjur Rehman had no past of history of crime, he masterminded the offence with his three accomplices," Behera said.
The four were charged under sections 385 (putting person in fear of injury in order to commit extortion), 387 (putting person in fear of death or of grievous hurt, in order to commit extortion), 506 (criminal intimidation) and 120 (b) (criminal conspiracy) of IPC and produced in the SDJM's court.
