A Tamil film producer was arrested on Wednesday and the nephew of chief minister Jayalalithaa's close aide Sasikala booked for allegedly cheating another producer of Rs 1.20 crore.
Based on a complaint by producer Prakash of Madley Road in Chennai, producer Chithirasenan was arrested.
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.