The Nabarangpur police arrested a Home Guard, Simanchal Jani, on the charge of colluding with a fraud accused, Basudev Rao, in the local sub-jail.
According to reports, Tapan Garada and Sirajuddin contacted the accused Basudev Rao and demanded that he pay two lakh rupees to them.
The Home Guard plotted a plan to collect the money. The family members of the accused intimated the matter to Jail Superintendent Sontosh Patnaik, who after an inquiry, filed a case at the Nabarangpur police station.
Police registered a case and forwarded the Home Guard to court and later remanded him to judicial custody on Monday.