Police on Wednesday arrested a film director-producer on charges of cheating a financier to the tune of Rs. 1.20 crore.

CCB sources said Chithiraichelvan (52), a resident of R.A. Puram, had approached Prakash of T Nagar in 2008 to finance his movie in South Korea. Following a promise to refund the money after the release of the movie, Prakash invested Rs. 70 lakh for the filming.

Last year, Chithiraichelvan and Sasikala’s nephew Bhaskaran, who is in prison on charges of cheating, persuaded Prakash to invest another Rs. 50 lakh for the making of a movie in which Bhaskaran played the lead.

Recently Prakash approached Chithiraichelvan and asked him to pay him Rs. 1.20 crore but he was threatened with dire consequences by the filmmaker. Prakash lodged a complaint with the Office of the Commissioner of Police.

A CCB team probed the matter and arrested Chithriraichelvan on Tuesday night from his residence. He was remanded in custody and sent to Puzhal prison on Wednesday.

Bhaskaran has been booked as the secondary accused in the case, sources added.