In a related development, S Malla Reddy, Assistant Commissioner of Police in Rachakonda Commissionerate in neighbouring Telangana, was shifted to Armed Reserve police following allegations that he spoke to the prime suspect in the killing of the businessman, a report from Hyderabad said.
US-based Chigurupati Jayaram, on a business visit to the state, was found dead with head injuries in his car on the roadside at Itavaram village, about 80 km from here, by a police patrol on the Hyderabad-Vijayawada national highway.
District Superintendent of Police Sarvashreshta Tripathy Tuesday told reporters in Nandigama that police arrested Rakesh Reddy, an acquaintance of Jayaram's niece, and his house watchman D Srinivas on the charge murder.
He said financial dispute was the main motive for the murder of Jayaram, who was the Director of private Coastal Bank and also owned a pharmaceutical company in Andhra Pradesh.
Police in Hyderabad said during the course of investigation names of the ACP and an Inspector rank police official in the city had "cropped up".
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They were accused of being in conversation with the prime suspect Reddy.
Rachakonda Police Commissioner Mahesh M Bhagwat Tuesday issued orders posting ACP Malla Reddy to armed reserve headquarters at Amberpet.
"After getting a detailed report from the Andhra Pradesh police, further inquiry will be initiated, " the Commissioner said.
