The incident took place yesterday in Charbatti area here, they said adding that bodies of both the victims were recovered from near a forest.
According to police, the deceased were identified as Madhukar Kapgate (41), a forest contractor from Kurkheda and Vinayak Lombhare (35), a resident of the Jambulkheda in Gadchiroli district.
Some handbills thrown by the Naxals were found near the bodies of deceased which mentioned that the duo were extorting money from Forest Labour Society, police added.
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