Bundles of burnt currency notes in denominations of Rs 500 and Rs 1000 were found in the multi-purpose vehicle on the outskirts of Suryapet town and its windshield had an "MLA sticker" of former Huzurnagar MLA and minister N Uttam Kumar Reddy, who is currently the working president of Telangana Pradesh Congress Committee (TPCC).
Police suspect that the cash was meant for distribution among voters.
Notices have been sent to the former MLA and also to the Photon Energy Systems seeking their response in view of the recovery of the burnt cash, Nalgonda Superintendent of Police T Prabhakar Rao told PTI over phone.
"We are investigating to determine the source of the cash and the person who was transporting the cash. We are trying to locate the driver of the vehicle who continues to remain absconding...Once the driver is nabbed more information can be revealed," the SP said.
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Andhra Pradesh Chief Electoral Officer Bhanwarlal had yesterday said that allegations were that there was Rs 2.5 crore in cash in the vehicle.
While some of the partially burnt currency notes were found lying inside the bonnet of the car above the engine, some were found on the back seat of the car, police said.