The trio, attached to a police station here, had stolen the cash from the jeweller, R Jalal of Chennai, during a vehicle check, Inspector T Ramachandran told reporters here.
Giving details, he said Jalal was proceeding from Chennai to Nagapattinam by car when the three policemen on duty at a checkpost at Aallpet on the outskirts of Cuddalore stopped the vehicle for an inspection early this morning.
During the check, the police personnel found a bag containing jewels and cash and reportedly questioned Jalal about the source, he added.
They let him go after questioning after which Jalal went back to his car, checked the bag and found Rs 20 lakh missing.
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Later, he filed a complaint at Cuddalore police station about the missing money.
Based on the orders of the Cuddalore Superintendent of Police C Vijayakumar, a special team conducted enquiries with personnel at the checkpost. It came to light that the three policemen had hidden the cash in a bush nearby.