However, Srinivasan did not release the funds and kept dodging the businessman. He even threatened Balasubramaniyam with a gun.
It was at this stage the businessman approached City Police Commissioner J K Tripathy and the police apprehended Srinivasan.
Police also said two similar cases of "cheating" are pending against the actor.
Srinivasan's claim to fame in Kollywood is that he acted and directed in a film, Lathika, and screened it in a single screen theatre for 100 days!
Later, he formed fan clubs and started calling himself 'Power Star'.
Srinivasan is now working in a comedy film, Kanna Laddu Thinna Asai, in which Santhanam is the hero.