Jayachandran would allegedly film NRIs and political leaders with women in hotels and apartments, and then blackmail them. The scandal broke earlier this month when an NRI complained to Kochi police after the gang sought Rs 3 crore from him.
Jayachandran was arrested on Wednesday night from outside the legislators hotel following a tip-off. He had reportedly got out to escape the police. He was allegedly found to be staying in a hostel room taken on behalf of Congress state general secretary Sarathchandra Prasad, in Prasads capacity as an ex-legislator. Ex-legislators get rooms at the hostel for Rs 10 a day.
Jayachandrans gang, including women and their male handlers, reportedly showed the businessman visuals of him with two women, who have also been arrested. He was threatened that the video would be released to his family and friends.
A friend of the complainant who was also blackmailed committed suicide allegedly under pressure. Both had stakes in real estate. Apart from the two women and Jayachandran, police have arrested two others.
Sarathchandra Prasad has claimed he had taken the room at the legislators hostel for Congressman Sunil Kottarakkara, and that he was not aware Jayachandran lived there.
Prasad admitted however that Jayachandran had attended an iftar party he had hosted in Thiruvananathapuram.
Blaming the controversy on his rivals, Prasad said: It is easy to trample on a fallen person.
DCP (Kochi) R Nishanthini said police were right now only looking into the complaint of the NRI. The political links of the accused are not relevant to the case, she said.
Meanwhile, following the controversy, the Assembly Secretariat Saturday cracked down on persons staying illegally at the legislators hostel.