Rourkela police arrested Arjun Thakur (50), an alleged criminal of the steel city and two of his associates, Guddu alias Jayaram Prasad and Jaggu alias Bijay yesterday.
Himansu Lal, Superintendent of Police, Rourkela, said the three were involved in the Jhirpani bridge incident. On May 20 they had demanded Rs 2 crore from the construction firm building the bridge.
They demanded the money in the name of People`s Liberation Front of India (PLFI) and left behind posters of the organisation, the SP said.
Though use of PLFI`s name triggered panic in the area, senior police officers maintained that criminals were behind the incident and not Maoists.
Following arrest of the trio, further investigation in the case is in progress, said Himansu Lal, SP Rourkela.
The police have recovered one country made revolver, one live cartridge and a motor bike from them.
Meanwhile, the Sundergarh police have arrested a key person of PLFI, Odisha, Dhananjaya Bhuyan from Kuanrmunda, police said.