The five men were arrested near Hathinala area by a police team on Thursday morning, they said, adding that two of their accomplices managed to flee from the spot.
The CAG has further noted that the excess expenditure over the authorisation and subsequent non-regularisation have been regularly reported in the previous State Finances Audit Reports of Uttar Pradesh.
In the video, the two children of Behta Mujawar police station SHO Ramesh Chandra Sahani, were seen sitting on a bed with 27 bundles of Rs 500 currency notes.
The incident, which took place in the Civil Lines area of Moradabad, came to light when the neighbours saw Nanhe leaving home at midnight in blood-stained clothes and informed the police.
In yet another hit-and-drag case, a 22-wheel container truck hit a car in Meerut and then dragged it for about 3 kilometres as bystanders looked on in shock.