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Inspector M Naga Raju said a case has been registered on a complaint by LIC officials. Both accused are absconding.

Over Rs 20 lakh was frozen in suspect bank accounts, and around Rs 1 crore was reportedly cheated from different victims, the officials added.

Facing mounting losses, the farmer allegedly decided to stage a total loss by releasing the surviving birds far from his farm.

Explaining the modus operandi, ASP (South) Anukriti Sharma said that the gang members used to target young individuals and, in some cases, killed them to claim life-insurance money.

The investigation also uncovered another fraudulent scheme involving a naval contractor from Ochira, who exploited online pharmacy bills to claim post-hospitalisation expenses.