Veerappan's ransom demand turned down

The South Indian hostage crisis took a dramatic turn on Saturday with the Karnataka and Tamil Nadu governments rejecting forest brigand Veerappan's ransom demand of Rs 50 million.

The authorities warned him of stern action if he did not accept their earlier offer and release the eight hostages.

"Ransom will not be paid under any circumstances," the governments said. Describing as 'generous' their earlier offer assuring safety to his life, transfer of cases pending against him in Karnataka to Tamil Nadu and detention in a special camp in Tamil Nadu for a minimum possible period, the governments said they would have no option but to take action if Veerappan declined the offer.

EARLIER REPORT:
Veerappan ready to settle for ransom