Inspector General of Police S. R. P. Kalluri said on Saturday that he received information from Darbha block on Friday that Naxalites are distributing this money so that it can be exchanged for new notes.
Kalluri said that police are investigating the matter.
He said that soldiers with Superintendent of Police R. N. Dash launched a search operation in Kumakolang jungle but the Naxalites escaped.
"Naxalites are trying to get money out from Abujmarh too. We are warning businessmen also not to get any Naxalite money exchanged or a case would be registered against them," he said.
Sources said that Naxalites are trying to extract their buried money. In the cities bordering Naxalite areas of Narayanpur, Dantewada, Dornapal, Konta, Bijapur, Bhopalpatnam etc., plainclothes police officers are keeping an eye on people.