The Telangana state committee of the CPI (Maoist) is believed to have accumulated a war chest of Rs 1.5 crore in 2024 through systematic collections from contractors and businessmen, with the majority stored in gold coins, according to state police. This information emerged after the interrogation of surrendered senior Maoist leader Malla Raji Reddy, also known as Sangram.
Structured Collection Network
Police sources revealed that the outfit built the war chest via a well-organized collection network that reportedly extracted money from sand contractors, beedi leaf contractors, local contractors, and businessmen in areas where the organisation still retains influence. Investigators noted that the funding system remained operational despite growing internal divisions and sustained security force operations that have weakened the group.
While the state committee handled the collection of funds, the higher committee was responsible for releasing specific amounts required by dalams (armed squads) for their day-to-day operations, sources said. These findings point to a structured system where local revenue generation was directly tied to operational needs on the ground.
Gold as a Financial Strategy
A striking feature of the financial strategy was the decision to store most of the funds in gold coins rather than cash. The report indicated that this approach was viewed within the organisation as a way to preserve value, avoid risks such as demonetisation, and protect assets from damage in forest conditions. Gold also offered portability, durability, and ease of concealment or movement between shelters. Police sources said the use of gold reflected an attempt to safeguard party resources in a form that could withstand prolonged pressure and uncertain operating conditions.
Internal and External Pressures
Despite the sizable collections, the investigators' report noted that morale within the organisation remained low. The findings also highlighted disputes among central committee members and ideological differences within the top leadership, creating internal strain that money alone could not resolve. The report further stated that sustained pressure from security forces forced the Maoists to relocate their technical and arms manufacturing units deeper into remote areas, such as the Karregutta hills. Police sources said this relocation underscored the increasing operational stress on the outfit.
The revelations come as part of ongoing efforts by Telangana police to dismantle the financial networks supporting left-wing extremism in the region.
