Three persons were on Thursday 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.