From 1961 to 1963 he led the Quechua peasant uprising in the Cuzco region of Peru. He was the first who managed to build a bridge between the Spanish speaking intellectuals and the Quechua speaking workers. He organised 2000 peasants in to the Departmental Federation of Cuzco Peasants (FDCC) which occupied the landowners' lands and organised the defence of that territory. While holding the Chaupimayo region, Blanco, at the time holding the title of "Agrarian Reform Secretary" formally passed a land reform. Blanco's Chaupimayo Community had its government, public law, popular justice, defense and education, Blanco called this "dual power". It was reported at this time that, while he was arresting a hacienda owner in Pucyura who was accused of raping a little girl, he shot a police officer in self-defense. According to some historians this seems to be propaganda, since he could not have been at Pucyura at the time. De la Puente rejected a union with Blanco because Blanco was a Trotskyist. Captured by the military, he was sentenced to 25 years imprisonment on the island of El Frontón. Nearly all his Trotskyist comrades where already in prison when he was captured. In 1963, unionists took the city of Quillabamba, who were carrying out an order, that was issued in Cuzco by the Federation, to go on strike, so that some imprisoned union leaders, among them, Hugo Blanco would be freed. During his imprisonment he wrote "". During this time he exchanged letters with José María Arguedas which were written in Quechua. In 1968 he was chosen by the Swedish section of Amnesty International as prisoner of the Year.