Police have foiled an extortion attempt in Malda by some youths who introduced themselves as cadres of the Kamtapur Liberation Organisation (KLO), a proscribed terror outfit.

Two youths, who were involved in the attempt, have been arrested. The police are trying to find out whether they have links with the outfit or had simply used the name to draw money.

Sources said on Saturday, a group of five-six persons, who had their faces covered, had turned up at the camp office of a private construction company in the Habibpur block of the district. The company has set up the office for the construction of a road that has been taken up under the state’s Pathashree scheme.

“We were resting at the camp when they turned up. They introduced themselves as KLO cadres and demanded Rs five lakh. They also threatened to torch the machinery and vehicles at the site if their demand was not met within some hours,” said Bifal Roy, manager of the construction company.

As the group left, Roy and his associates informed the police and filed a complaint at Habibpur police station.

The sources said the company had been tasked with building a 2km-long bituminous road in the Dhumpur panchayat of the block. The state has allotted Rs 54 lakh for the work.

The police started a probe and nabbed Rahul Barman and Kanai Barman, both in their twenties, from different locations.

“They were arrested for extortion attempt. We need to interrogate them to know whether they have any link with the KLO,” said a police officer.