In different areas of the Telangana region, immediately after the Indian army's ‘police action’, there were expectations that a new democratic set-up would be ushered, in place of the old Nizam-Razakar regime, and that it would safeguard the gains of the people and assure them a better life. Many squad members and organisers laid down thier arms, carried away by the general enthusiasm. But as the landlords returned, and the Union Government intensified its military and police repression in all areas, squads were reorganised, arms taken up and defensive actions against the landlords and informers and police were begun.

But in the Nallamala region, the area leadership persisted for the whole year of 1949 with its line of no armed struggle, they laid down the plan of action which said: (i) dissolve the guerrilla squads and dump the arms; (ii) no action against the landlords and their agents until a powerful network of secret Party cells was built which on their own could take action against these elements; (iii) no action against the police and military as it would invite tremendous repression and destroy whatever organisation we might have been able to set up; (iv) people themselves to defend the land and cattle distributed earlier and not expect guerrilla squads to come and attack the enemy; and (v) dissolve the village people's councils.

This committee argued that its line of partial economic struggles and secret Party organisation was the only correct line till the situation in large parts of India developed anew.