The crocodile has now been released into the Ghagra river
Villagers in Uttar Pradesh were initially alarmed when they found a crocodile lurking in the local pond. But then they hatched a plan -- to demand a ransom.
The eight-foot reptile from a nearby nature reserve turned up in the village of Midania in Uttar Pradesh after monsoon flooding on Tuesday, officials said.
Anil Patel, an official responsible for the buffer zone around the Dudhwa Tiger Reserve told AFP that the locals caught the crocodile and then demanded Rs 50,000 to give it back.
"It took us hours to convince them with help from local police and authorities to release the crocodile," Mr Patel said.
The villagers were also threatened with legal action, with officials explaining that they risked being jailed for up to seven years.
The crocodile, Mr Patel said, is free now. "We released it into the Ghagra river the same day."
"They had no idea that the crocodile was a protected animal under the Wildlife Protection Act. It's important for us to educate more people about wildlife," he added.