Four voters who accepted the money have also been named in the case, a police officer said today.
The Municipality of Gudivada town of Krishna district went to polls on March 30. Dhanalakshmi contested from ward No. 21 of the urban civic body.
J Prabhakara Rao, District Superintendent of Police, told PTI that on election day, a polling agent of Dhanalakshmi distributed 13,000 currency notes of Rs 500 denomination each to voters to cast their ballot in her favour.
However, it was later found that though the currency notes were genuine, they were rejected by traders since they were printed before 2005 (the cut-off year set by RBI for valid notes), he said.