Rayagada, Dec.05: Two persons were arrested for allegedly running a fake Maoist outfit and demanding extortion from a contractor in Rayagada, police said on Wednesday.
The accused has been identified as K Madhav Rao of Kasturinagar and V Jagannath of JK Pur area.
The arrests were made following the complaint of a contractor against the accused duo. In his complaint, the contractor stated that Rao and Jagannath had demanded Rs 50 lakh extortion by impersonating themselves as Maoists.
Later, he lodged a complaint with the local police. Based on the complaint, the police had launched a probe into the matter and arrested the accused. The duo was produced before the court.
Earlier, one of the accused was arrested by Rayagada police in connection with the case.