Former DMK MLA V Veluchamy was arrested on charges of cheating a Chennai-based granite merchant of `25 lakh in connection with a commercial agreement in 2007, here on Saturday.
According to police, Gowtham Kumar Reddy, a resident of Chennai, lodged a complaint with Superintendent of Police V Balakrishnan stating that Veluchamy (48), of Anna Nagar, had failed to deliver him granite after taking the advance amount for providing the shipment.
Reddy said that Veluchamy, who claimed to have a lease agreement to mine granite from a quarry in Tiruvadavur, entered into an agreement with him to supply granite. He paid the advance amount of `25 lakh in 2007.
However, Veluchamy failed to supply granite to Reddy. Moreover, when Reddy demanded that his advance payment be returned, Veluchamy refused to return it and threatened him.
Earlier, Reddy had filed a petition with the District Crime Branch police over the same issue involving Veluchamy in 2011.
Based on the direction from the Superintendent of Police, a case was registered and Veluchamy was arrested in the morning.