Telugu film producer Singanamala Ramesh was Friday arrested in Chennai on charges of threatening a film financier, Jayanth Reddy, police said.
Ramesh, who was evading arrest since the last five months, was held by a team of Criminal Investigation Department (CID) officials at Chennai airport. He is likely to be brought to Hyderabad later in the day.
Sources said the producer was arrested on charges of threatening Reddy, who had complained to police in February this year that Ramesh along with Bhanu Kiran, threatened to kill him in 2008, after he demanded back his Rs 7.2 crore.
Bhanu Kiran is the prime accused in the murder of gangster Maddhelacheruvu Suri, a police source said.
The financier came forward to lodge a complaint after police started looking for Bhanu in connection with Suri's killing.
Ramesh is also facing charges of cheating proprietor of Shalimar Videos over the video rights of a film Komaram Puli.
With the arrest of Ramesh, the police hopes to make progress in the investigations into Suri's killing.
Suri, a politician-turned-gangster from Anantapur district, was gunned down by his close aide Bhanu in Hyderabad Jan 3.
Bhanu himself still remains at large, though police arrested four of his associates.
Suri was the key accused in former Andhra Pradesh minister and Telugu Desam Party (TDP) leader Paritala Ravi's murder in 2005.
The factional rivalry between the families of Suri and Ravi drew national attention last year after famous filmmaker Ram Gopal Varma made a film, Rakhta Charitra, on their real life story.