Police said 18 suspects, including 13 naval personnel, were allegedly involved in an espionage conspiracy prejudicial to national security.
"The Andhra Pradesh Counter Intelligence Cell received credible information regarding certain persons in India allegedly maintaining direct contact with Pakistan Intelligence Operatives (PIOs) and their suspected involvement in an espionage conspiracy prejudicial to the national security of India," the police said.
"Two suspects were arrested after a prima facie role was established in this case and further investigation is going on for the remaining suspects," it said.
What police allege
According to police, Varaprasad allegedly shared sensitive and classified information relating to naval and defence establishments with PIOs and received money in return.
Mukharjee was allegedly involved in sharing an OTP for activating a WhatsApp account by a PIO, communicating with PIOs and sharing sensitive information relating to naval and defence establishments.
Mukharjee was arrested recently from Coimbatore in Tamil Nadu and sent to judicial custody till October 14 after being produced before a court in Vijayawada. Varaprasad was also sent for judicial remand till October 14. Both are lodged in the district jail, Vijayawada.
Operation Firewall-2026
The Counter Intelligence (CI) Cell coordinated with police forces in 10 states under "Operation Firewall-2026" to probe the suspects. Police said the suspects shared information on Visakhapatnam and other parts of the country through encrypted communication channels.
Visakhapatnam hosts the Eastern Naval Command (ENC), Naval Dockyard, Hindustan Shipyard Ltd (HSL) and Visakhapatnam Port.
A case was registered at the Counter Intelligence Police Station in Vijayawada on September 2 under Sections 61(2), 147 and 148 read with Section 3(5) of the Bharatiya Nyaya Sanhita, 2023, Sections 17 and 18 of the Unlawful Activities (Prevention) Act, 1967, and Section 3 of the Official Secrets Act, 1923.
As many as 12 CI Cell teams were deployed across 10 states and Union Territories, including Andhra Pradesh, Keralam, Maharashtra, Karnataka, Gujarat, Goa, Delhi, Tamil Nadu, Chhattisgarh and Bihar. The investigation is sensitive and ongoing, police said.