Maoist war chest ran on contractor collections, gold coin reserves, say police

Hyderabad: The Telangana state committee of CPI (Maoist) is believed to have built a Rs 1.5 crore war chest in 2024 through collections from contractors and businessmen, storing much of it in gold coins, state police said after interrogating surrendered senior Maoist leader Malla Raji Reddy alias Sangram.Police sources said the outfit built the war chest through a structured collection network that reportedly drew money from sand contractors, beedi leaf contractors, local contractors and businessmen in areas where the organisation retained influence. Investigators said the funding system remained active despite growing internal cracks and sustained operations by security forces, which weakened the organisation.While the state committee collected the money, the higher committee was said to be responsible for releasing specific funds required by dalams for their day-to-day operations, sources said. The findings point to an organised system in which local revenue generation remained directly linked to operational requirements on the ground.One striking feature of the financial strategy was the decision to store most of the funds in gold coins instead of cash. The report said this 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 another advantage — it was portable, durable and easier to conceal or move between shelters. Police sources said the use of gold reflected an attempt to safeguard party resources in a form that could survive prolonged pressure and uncertain operating conditions.Sustained pressureDespite the sizeable collections, the investigators' report said morale within the organisation remained low. The findings also pointed to disputes among central committee members and ideological differences within the top leadership, creating internal strain that money alone could not address.The report also said sustained pressure from security forces forced the Maoists to shift their technical and arms manufacturing units deeper into remote areas such as the Karregutta hills. Police sources said the relocation of these units highlighted the increasing operational stress on the outfit.