Hyderabad: Two persons were arrested for extorting money by posing as policemen in Attapur area of Hyderabad on Thursday. The duo was trying to 'seize' Rs 50 lakh of demonetized currency notes from a man promising him that they money will be exchanged.

Ravinder Reddy, an insurance agent, and R Raju, a former home guard, were arrested while co-conspirator Naresh, an MBA student is absconding, said DCP P V Padmaja. Rs 37 lakh were seized from the possession of the duo, the DCP said.

Reddy had promised the victim that he had arranged exchange of his cash of Rs 50 lakh in demonetized currency without going to the banks. The victim then drove to Attapur area from Secunderabad in a car on Tuesday night, carrying the cash.

On the way, Raju and Naresh who were riding a bike overtook the car at an isolated place and forced it to stop. Posing as policemen, they asked him to show his ID proof and questioned him about the huge amount of cash, saying it was black money.

They threatened that 200 percent penalty will be imposed on him and a case will be filed. They asked him to hand over the cash bag. When he resisted, the duo snatched it away and fled. A case under section 384 (extortion) of the IPC was registered following which Reddy and Raju were arrested.

The DCP appealed to the people not to fall into the trap of such rackets, which claim of exchanging the old currency notes outside the banking system.