Hyderabad: Eight extremists, members of a newly formed group which allegedly indulged in extortion and violence, were today killed in an exchange of fire with police in Telangana's Bhadradri Kothagudem district, an official said.

The face-off took place in a forest area falling under Tekulapalli mandal of the district around 6.30 am, a senior police official said.

"Eight extremists have been killed in the exchange of fire. They fired on the police team and in the retaliatory firing, eight of them were killed. At least five weapons have been recovered from the scene," the official told PTI.

No policemen were injured in the incident, he said.

The group members indulged in extortion and violence in the area, the official said.

The police, based on a specific information, took up combing in the area in a bid to nab them, he said.

According to police, the men were formerly associated with the 'Jana Shakti' group of Naxals.

On July 24, a new group, called CPI (ML) Chandra Pullareddy (CP) Bata, was formed with 12 members under the leadership of K Rajana and B Narasimhulu, the police said.

According to police, the group members started their activities in four districts -- Jayashankar Bhupalpally, Mahabubabad, Kothagudem and Khammam -- wherein they indulged in extortion from businessmen, conducted land settlements and civil panchayats, put up pamphlets and created terror in the society.

On December 3, the police had arrested three armed extremists of the group in Jayashankar Bhupalpally district and seized a rifle, two grenades, several rounds of ammunition, empty magazines, six kitbags and seven cell phones from their possession.