This was revealed during interrogation of an arrested hard-core Maoist, identified as Cherwa, said Pankaj Kamboj, Superintendent of Police.
Cherwa, an influential man in the area and a member of the management committee of a school, said during interrogation that he used to siphon off food grains meant for mid-day meals in the school as well as PDS in his village Banguruia in the district.
The red rebels used this means particularly during anti-Maoist operations when other routes to rations were cut off, he said.
The chairman of Krantikari Kisan Committee, a frontal organisation of the Maoists, Cherwa was arrested from a village in Saranda forest on Wednesday.
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Besides, Cherwa and another arrested cadre, Dubi Gudia, used to supervise projects under the MGNREGA, he said.
Both the ultras were rich and possessing 60 to 70 acres of land in Banguruia village, he said.
Gudia and another ultras were arrested between villages Banguruia and Surgunia in Saranda forest yesterday following interrogation of Cherwa.
The security personnel had also recovered three landmines and two hand grenades, which were defused.
Besides, one rifle, three country-made pistols and cartridges were also recovered, the SP said.