Hyderabad CID police arrested Tollywood producer and president of the South Indian Film Chamber of Commerce Mr C. Kalyan in Chennai Wednesday evening for his involvement in fraud and threatening people.

C. Kalyan, who is a close friend of Bhanu Kiran, the prime accused in the murder case of faction leader Maddelacheruvu Suri and another Tollywood producer Singanamala Ramesh, had already applied for anticipatory bail in the threatening and cheating cases.

Kalyan, also said to be very close to the slain faction leader Suri till his day of killing, was facing allegations of cheating, extortion and threatening. He produced movies like Rakta Charitra, Chandamama and Paramveerachakra.

Mr Mohammed Ashraf of Shalimar Video Company and Mr Mohammed Ashfaq of Universal Home Entertainment had complained against Kalyan alleging that Ramesh and Kalyan had duped them  to the tune of Rs 34.75 lakh each in the name of VCD and DVD rights for the movies Komaram Puli and Mahesh Khaleja.

Mr Kalyan will be brought to Hyderabad today or tomorrow and produced before the Nampally criminal courts.