Hyderabad Task Force Police arrested producer Nandi Srihari in a cheating case.

Hyderabad police commissioner AK Khan said producer Nandi Srihari, who recently produced 'Nagaram Nidrapothunna Vela', started a multi-level marketing business along with two of his associates T Mukthi Raj and B Baburao under the name of Gurudeva Infra Developers India Pvt Ltd in Habsiguda.

They had reportedly cheated middle-class people who are attracted to their multilevel marketing company's bogus claims of earning easy money for minimum investment.

They lured 38,500 gullible customers, promising them that on purchase of plots on the outskirts of the city, they would be paid money on a daily basis depending on the package they opt for.

Each member had to pay Rs 10,000 and was supposed to get back Rs 40 crore in return. "The promoters had wound up the office and were about to abscond," Khan added.