VISAKHAPATNAM: Four people, including a woman CI, have been arrested in the case of scamming money from ex-Navy officials. Reserve Inspector B Swarnalatha, police constable M Hemasundar, home guard V Srinivas and their middleman V Suri Babu scammed about Rs 12 lakh from ex-Navy officials.

They cheated the retired Navy officers by saying that they can give Rs 2000 notes at a huge profit in exchange for Rs 500 notes. The promise was that if the entire money received after retirement from the army was paid in 500 rupees notes, then 2000 rupees worth one crore would be paid. The fraud was done by saying that the profit would be around 10 lakh rupees. Suri Babu, the middleman, had asked Swarnalatha and others to arrive on the day of handing over the money. Following this, a police team led by CI Swarnalatha arrived on time at the spot and seized the money.

The ex-Navy officials got worried on seeing Suri Babu, the middleman, getting beaten up by Swarnalatha. After threatening to call the Income Tax officials, the ex-Navy officials agreed to pay to settle the case. Women CIs, police constables, home guards and middlemen split the money and let go of the naval officers after advising them. The gang's fraud came to light when one of the people who got cheated filed a case with the police. They were arrested later.