"Demonetisation has choked (Maoist) funds. Therefore they are showing desperation to snatch arms," Mr Mehrishi said in a press briefing.
The Prime Minister on November 8 last year banned Rs 500 and Rs 1,000 currency notes declaring them as illegal tender.
The Home Secretary was replying to media queries after the day-long security review meeting here with the Chief Ministers of Maoist-affected states chaired by Home Minister Rajnath Singh, days after at least 25 paramilitary troopers were killed by Maoists in Chhattisgarh's Sukma district.
More than 3,000 live cartridges, 70 magazines and 67 Under Barrel Grenade Launchers were also snatched from the CRPF.
A total of 83 firearms and 6,683 rounds of ammunition were robbed by Maoists between January 2012 and April 24 this year in over 10,400 violent incidents in 106 districts in 10 states: Chhattisgarh, Jharkhand, Odisha, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Madhya Pradesh and Uttar Pradesh.
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