A showroom promoter and his wife were arrested on Saturday for allegedly cheating a local businessman of Rs 3 crore in Hyderabad.

Kalanikethan wedding mall promoter V Leela Kumar had taken a loan of Rs 3 crore from one A V N Reddy, his neighbour in Shaikpet area, around a year ago by entering into a Memorandum of Understanding (MoU) stating that he will offer partnership to Reddy and make him chairman of his showrooms, Additional DCP (Detective Department) Vijayendar Reddy said.

When Reddy was not given any partnership shares nor made the chairman, he asked for his money back. The cheques given by Kumar, however, bounced.

After this, Reddy approached the Central Crime Station -- a wing of the Hyderabad police, seeking necessary action against Kumar, the senior police officer said.

A report in the Times of India adds that the police, during enquiry, came to know that Leela Kumar had debts to the tune of Rs 150 crore and his victims were spread across Telangana and AP. He was also yet to repay money to several sari suppliers.

Kumar and his wife were booked under relevant sections of the IPC and investigations are underway.

(Inputs from PTI)