Four people, who were posing as Maoists, were arrested for threatening a woman legislator and demanding an extortion of Rs1.3 million, police said on Sunday.
"The men were arrested in simultaneous overnight raids carried out in Surguja district for seeking extortion from Renuka Singh," Inspector General of Police (Surguja) RC Patel told IANS.
Renuka Singh is a tribal leader of state's ruling Bharatiya Janata Party (BJP) and represents the scheduled tribe reserved seat from Premnagar in Maoist-hit Surguja district in the state assembly.
Police had begun probe into the matter on Saturday after the legislator informed police that she had received a letter from Maoists demanding an extortion of Rs 1.3 million.
Besides sending a letter, the men also contacted Singh on her mobile phone and threatened of dire consequences if she reports to the police. But the legislator informed the senior police officers of Surguja district and an FIR was registered on Saturday.
Patel said the arrested men had been extorting money from local influential people of political and business sectors in name of Maoist rebels.