The Task Force sleuths had busted a prostitution racket on August 31 at a hotel in Banjara Hills area, which allegedly involved the actress who had won national award for best child artist in the past.
Balu, an assistant director in Tollywood who acted as her agent, was arrested.
Additional Deputy Commissioner of Police N Koti Reddy today said during questioning the actress revealed that she got into prostitution as she was not getting film offers any longer, and was financially in dire straits.
"The actress is a victim; she has not been arrested. She has been sent to a rescue home, while Balu was arrested under Prevention of Immoral Trafficking Act," Reddy said.
Reports have it that Shweta was caught in the act during the raid. What is more shocking is that this is not the first time that Shweta Prasad was caught in the prostitution act, as she was caught earlier as well during a sting operation conducted by a TV channel, in which she demanded money from politicians and businessmen in exchange for sexual favours.