Rayagada: The Town Police on Tuesday arrested two persons for allegedly running a fake Maoist organisation and demanding extortion money in Rayagada.
The accused identified as K Madhav Rao of Kasturinagar and V Jagannath of J K pur area demanded Rs 50 lakh from a contractor under the name of a Maoist leader Chalapati.
However, after getting information, police arrested both the accused and after a preliminary investigation, the duo was produced before the court.
"One of the accused had delivered a letter to the wife of the contractor demanding extortion of Rs 50 lakh. We have arrested two persons in connection with the case," Krushna Chandra, Inspector-in-charge of Rayagada town police station, said.
Earlier one person had been arrested by Rayagada police in connection with the case.