CHENNAI: The city police on Friday arrested two persons, including the sister of notorious gangster P Nagendran for allegedly making death threats to a man in Vyasarpadi over a financial deal that went sour.

Nagendran and his son Ashwathaman, a former Youth Congress functionary, are the main accused in the murder of BSP State unit president K Armstrong in July last year.

Recently, the police searched Nagendran's unused house in Vyasarpadi after receiving a tipoff that Nagendran's younger brother Ramesh was preparing a plan to murder a rival. Seven persons, including Ramesh, were arrested. Following this, police teams conducted checks at the properties of Nagendran and his family members in and around Vyasarpadi a few days ago.

Meanwhile, on Friday, the police arrested Nagendran's sister Karpagam (46) based on a complaint from a man who took a Rs 1 lakh loan from her. The complainant, Murugan, said he settled up to Rs 1.5 lakh, including interest, on his loan to Karpagam and her husband, Satish. However, Karpagam allegedly threatened Murugan for an additional Rs 3 lakh along with the principal amount.

Karpagam and Sathish went to Murugan's house, threatened him with a knife, and attacked his daughter, too, after which he filed a complaint at the Vyasarpadi police station. Further investigations are on.