Unaccounted cash worth Rs 1.27 crore was recovered from a man at Telangana's Hyderabad last evening - the eve of a crucial election in the state, officials have said.
Police have arrested three people from Narayanguda area of the city in connection with the seizure of the money.
Acting on a tip off, police searched Phani Kumar Raju who was travelling on his scooter with the cash. On being questioned, the man confessed that he worked as a collection agent for Manne Srinivas.
He said he received Rs 70 lakh from Manne Srinivas and Rs 57 lakh from another man. Phani was on his way to Kavadiguda to hand over the Rs 1.27 crore to someone, officials said, adding that the details are being ascertained.
"We have arrested all three accused and a case has been registered," a senior police officer said.
There has been no direct link between the 'hawala' cash seizure and the Manugode bypoll, though huge amounts have been seized in Hyderabad recently. Rs 89 lakh was recovered from a car in Hyderabad's Jubilee Hills area three days ago.
The bypoll in Telangana's Manugode was called after the Congress MLA resigned and joined the BJP. The contest is largely between RK Rajagopal Reddy of the BJP, former MLA Kusukuntla Prabhakar Reddy of the TRS and Congress's Palvai Sravanthi.
The counting of votes will be held on November 6.