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Nizamabad Police Commissioner K R Nagaraju said one of them joined the PFI in 2017 while two others had joined the outfit subsequently.
The trio had paid the 52-year-old man, a karate instructor, Rs 6 lakh for the construction of a house, police said.
The man, in the guise of conducting a training camp in the form of legal awareness and karate classes, was allegedly motivating innocent youth in anti-social activities for the past six months and trained them in martial arts and allegedly in the usage of lethal weapons, police said. Further probe is underway.