Telangana police are keeping a watch over the movements of Maoist sympathisers and cash transactions in banks in Maoist-affected areas, after reports of them trying to exchange old currency notes due to the demonetisation.
Police say there is a possibility that Maoist cash from Chhattisgarh may have been moved to banks in Karimnagar, Khammam and Warangal.
To check this, police have intensified the patrolling of vehicles and are keeping vigil over Maoist sympathisers on the state's borders with Chhattisgarh and Maharashtra.
Even though Maoist numbers and their activities have decreased across the state, the top 11 Maoist leaders operating in Chhattisgarh are from Telangana, due to which a large amount of demonetised currency movement is expected in Telangana.
It was reportedly estimated that Maoists in the state have nearly Rs 60 crore to Rs 70 crore and gold worth Rs 100 crore.
Similarly, Maoists in Andhra Pradesh are suspected to have nearly Rs 200 to Rs 300 crore stored.
“Until a few years ago, Maoists used to keep the cash that they had collected by imposing a levy or through extortion from contractors in dumps. But later, they changed their strategy and began converting cash into gold and keeping only about 20 to 30% of their reserves in cash," a senior cop told Times of India.
The cash is used for the purchase of weapons, medicines and for daily needs.
Due to the recent demonetisation of currency, now Maoists fear that holding large amount of currency in forest dumps may spoil it.
While only one or two Maoists are tasked with creating such a dump, the organisation feared that in case those persons died in police firing, the money would be lost forever, the senior officer added.