Hyderabad: Three persons were arrested on Thursday in Mahabubnagar district for trying to exchange old currency notes to the tune of Rs 12 lakh with new notes, for the outlawed CPI (Maoist) Party.

The attempt was thwarted on a tip-off by SHO (Station House Officer) of Makhtal police station, who said that the some persons suspected were trying to convert old currency into new currency with the help of a post office employee in Manthangode village in Makhtal mandal.

The SHO, who rushed to the village along with a team found two persons in the house of Satyanarayana Chary, Branch Post Master with cash bundles of Rs 500 and Rs 1,000. On questioning, the other two persons revealed their names as Trinadha Rao and Sidharth, but refused to divulge details of the source of the money.

The attempt was thwarted on a tip-off by SHO (Station House Officer) of Makhtal police station, who said that the some persons suspected were trying to convert old currency into new currency with the help of a post office employee in Manthangode village in Makhtal mandal

Rao and Sidharth, who work for a Hyderabad-based engineering company at Charla forest area in Bhadradri-Kothagudem district, were allegedly threatened by Maoists, said police.

A case has been registered under sections of Telangana State Public Securities Act against the trio. After preliminary investigation, they were arrested by Makhtal police and have been remanded in judicial custody.

Police said efforts are being made to identify the Maoists who gave them cash.