CHENNAI: The Central Crime Branch (CCB) of Tambaram City Police arrested a businessman and his associate on Sunday in connection with a Rs 21.75 crore fraud on a film production company.

The arrested persons were EVP Santhosa Reddy (45) and his associate, V Vinod (52). They were arrested based on a complaint from Vels Film International Limited’s manager.

According to the complaint, Reddy and his associates approached the production company and entered into a business partnership in June to develop amusement park and cinema halls under Vels name at the 34 acre land belonging to his family in Sembarambakkam. Reddy took Rs 21.75 crore from the Vels group as per the deal.

However, after receiving the money, they did not honour the deal and also allegedly cancelled the contract illegally. They threatened the Vels group executives to vacate the premises, after which a complaint was filed. The CCB registered a case on the directions of Commissioner A Amalraj. The duo were arrested after a probe. Search is on for another associate, Kiranraj.