Police in Nanyang, Henan province, have detained the leaders of a house demolition team alleged to have used AIDS patients and HIV carriers to threaten locals to move away, according to the city's publicity department.

Local police did not reveal details, saying the team is still being investigated and it is not yet known whether it included genuine AIDS patients or just used the possibility of infection with the disease as a threat.

Nanyang's Wolong district government and the city's Yi'an Property Development Co denied they set up such a team to clear the way for real estate projects.