PWG extorts Rs 1,000 million from businesses in AP

While the Bombay underworld's extortionate practises have been making the media headlines of late, in Andhra Pradesh the People's War Group is allegedly milking big business to the tune of Rs 1,000 million annually, according to recent newspaper reports.

Senior intelligence department sources indicate that the money is, more often than not, extorted in the names of the outlawed PWG, the Janasakthi and Chandra Pulla Reddy factions, and assorted other Naxalite gangs. And the payees include leading corporates houses, individual businessmen, and -- wait for this -- political figures belonging to both the ruling Telugu Desam party and the Congress.

A good 50 per cent of the take goes into the PWG coffers, while the splinter groups between them account for the remainder.

Intelligence reports indicate that the MLAs falling prey to extortion -- and their contribution to the kitty approximates to one fourth of the overall take -- hail mostly from the Naxalite-infested districts of Karimnagar, Warangal, Adilabad, Nizamabad, Medak and Khammam.

And typically, no complaints are lodged. Thus, the police and intelligence departments are rendered powerless to take action. Top police officials, for instance, indicate that recently, a Hyderabad-based company coughed up a whopping Rs 50 million to the PWG, while a manufacturing concern paid up Rs 20 million -- common knowledge in police circles, but again, no official complaint, ergo, no action.

While most of these payments are in response to demands made on individual companies, the time-tested PWG tactic of kidnapping for ransom continues unabated. Recently, the sons of a leading businessman of Suryapet town paid Rs 6 million after PWG cadres kidnapped their father.

The police say the victims are scared to lodge complaints fearing retaliation and reprisal. Besides, reporting such extortionate demands could also involve them in tax troubles -- another good reason for them to pay up and keep silent.

In most cases, the modus operandi is simple -- the leader of the outfit sends a letter, or a courier, with the demand. A deadline of up to a month is allowed for the victim to pay up, and the punishment for failure to meet the demands is death. Given that the organisations are known to be totally ruthless, the threat is taken seriously, and victims more often than not pay up rather than chance the ultimate penalty.

Interestingly, this has created a piquant situation, with fly by night outfits getting into the act and extorting money in the PWG's name . After all, point out the police, the recipient of a ransom demand is hardly likely to ask the courier for an identity card. The Hyderabad police says they have nabbed six such get-rich-quick gangs during the past couple of years, but admit that for every gang they trap, there are several more getting off scot-free with the booty. Interestingly, the fake gangs generally operate in the urban areas of Warangal, Khammam, Nizamabad and Nalgonda, besides the twin cities.

What worries intelligence agencies is the question of where the money goes -- and for what purpose. Obviously, say sources, a part of the proceeds go into funding the cadres, purchase of arms and ammunition and for publication of literature and propaganda material. However, all this would still account only for a percentage of the overall take -- so the question of what use the Naxalite outfits make of the balance is a question worrying top officials in both the police and intelligence departments.

Interestingly, with the kind of money floating around -- and no receipts either -- instances of the cadres themselves developing sticky fingers are not unknown. Thus, PWG militants are said to have shot dead a colleague after the latter attempted to abscond with Rs 800,000 collected through extortion.