Police said cases had been registered against Sasikala's nephew BAS alias V Baskaran for his alleged involvement in the cheating.
Prakash had alleged that Chithirasenan made him spend Rs. 70 lakh and another Rs. 50 lakh in two separate instances in the making of a film but did not return the money.
He said he was threatened when he questioned about the bouncing of cheque for Rs. 20 lakh given by Chithirasenan.
Baskaran had already been arrested on June 3 on charges of cheating a woman to the tune of Rs. 3 lakh after promising her a government school teacher's post.