Three people were arrested after an attempt to exchange old currency notes on behalf of Maoists in Telangana's Mahabubnagar district on Thursday.
The incident occured in Manthangode village of Makhtal mandal.
The accused were identified as C Trinadha Rao (45) who is a Deputy Project Manager in Gaja Engineering Company Private Limited, Lolla Siddarth (27) who is an engineer in the same company and Satyanarayana Chary (36) who is a postmaster in Manthangode village.
Trinadha had been working in Charla forest area along the Bhadradri-Kothgudem District.
In September, an unknown person stopped work at the project site and began threatening them. Next month, the same person handed him a letter asking him to come to the 'Maoist Martyrs Stupa' in Bheemavaram village in Chhattisgarh, on October 28.
The letter was allegedly from the CPI (Maoist)â€™s District Committee Secretary of Khammam.
When he reached the place accompanied by his colleague, Siddarth was asked to to give 10% commission on the ongoing projects if he wanted work to resume.
After the demonetisation, on November 12, he was asked to convert around Rs12 lakh into new currency in Rs 2000 denominations, with the promise of a commission.
Siddharth approached his friend, Satyanarayana Chary, as he worked as a branch post master and could help in converting the money.
Satyanarayana agreed to help after demanding 15% commission.
The duo were to come to Manthangode on November 30 to receive the new notes.
However, their attempt was thwarted by the police.
After the investigation, they were arrested by the Makhtal Police on Thursday and remanded to judicial custody.
The case is under investigation.