The police are now inquiring into the incident after Mr Rehman alleged that his neighbours were behind the fire.
When residents of a slum in Kalyan near Mumbai went to douse a fire that had broken out in one of the houses on Wednesday, sacks full of cash left them shocked.
The house belonged to an Abdul Rehman and his wife, an elderly couple who begged for their livelihood, say residents of Lahuji Nagar.
"We threw water and tried to control the fire as much as it was possible for us. But when we threw water at where smoke was coming out from, we saw burned rupee notes there were two-three sackful of notes and half of it was burnt to ashes," said Kishore Patil, a neighbour who helped extinguish the fire.
Along with about four sacks filled with money, Mr Rehman and his wife lost most of their belongings too.
The value of the cash lost in the fire is yet to be ascertained.
They begged in the neighbourhood to earn their living and would often survive on meals sponsored by strangers.
Explaining the sacks of money found at his place, Abdul Rehman said, "I used to weave mattresses and make plastic wires and seats and later on I had very blurred vision and weak knees which made me a beggar."
Mr Rehman's son and daughter in law too, who rushed to the spot after hearing about the fire, were also shocked to hear about the money recovered at the residence.
The police are now inquiring into the incident after Mr Rehman alleged that his neighbours were behind the fire since they wanted to get their hands on the money.