Bhopal: The Anti Terrorist Squad (ATS) of Madhya Pradesh police has arrested 11 persons for allegedly supplying information to Pakistan's spy agency ISI.

ATS chief Sanjiv Shami talking to newsmen in Bhopal on Thursday said that the espionage racket was handled from Paksitan through a private telephone exchange, which could have also been used for transferring Hawala money and lottery fraud.

“Five persons from Gwalior, three from Bhopal, two from Jabalpur and one from Satna has been arrested in connection with the spying,” said Shami adding that the action was carried out in cooperation with central investigative agencies, J&K intelligence and agencies from UP.

One of the accused arrested from Gwalior is relative of BJP corporator.

The ATS chief informed that RS Pura police station in Jammu had last year arrested Satwindar and Dadu on charges of spying for Pakistani handlers. The duo used to pass on information of strategic camps, bridges, movement of army and central forces to Pakistan based handlers.

The subsequent probe revealed that the two received money from a Satna (Madhya Pradesh) based man Balram, who was handling multiple bank accounts under fictitious names.

Balram used to receive money from private telephone exchanges being operated from multiple places and calls made thorough these exchanges hid the identities of the callers and showed sim card names registered on forged names and addresses.

“These exchanges helped Pak handlers in getting in touch with their Indian sources and also carrying out crimes like lottery fraud,” said Shami.

Several exchanges, sim box, hundreds of sim cards have been recovered in the raid.

The arrested accused, Jitendra Thakur and Kush Pandit, used to operate private exchanges which were established in connivance with telecom sector staff, officers said Shami. Jitendra is brother-in-law of Gwalior based BJP corporator.

The accused have been charged with treason, violation of Telegraph act and others relevant acts.

IB has sounded an alert for defence manufacturing establishments in Jabalpur following arrest of two persons from the city in connection with espionage racket.