Circle Inspector K Balagangadhar Thilak told PTI that Dhana Lakshmi who contested from ward no 21 and her agents G Krishna and M Joshi Babu were among those arrested.
They are accused of distributing currency notes of Rs 500 denomination. The matter came to light when the local shop-keepers refused to accept the notes which were pre-2005, and irate recipients disclosed to the media that money had been distributed.