Two people have been arrested in connection with posting objectionable content on social media linking YSR Congress party chief YS Jagan Mohan Reddy's sister YS Sharmila with "Bahubali" actor Prabhas, police said.
YS Sharmila had lodged a complaint with the Hyderabad police chief on January 14 and denied rumours linked her to the Telugu star. Her husband Anil Kumar accompanied her to the commissioner's office.
Jagan Reddy had alleged that N Chandrababu Naidu's Telugu Desam Party (TDP) was behind spreading such rumours. "I have natural reasons to accuse the Telugu Desam Party (TDP) that they are behind this mud-slinging," YS Sharmila said.
A case under the IT Act and IPC section 509 (word, gesture or act intended to insult the modesty of woman) was registered against unknown persons, police said.
During investigation, an MCA student from Andhra Pradesh's Guntur was arrested on Saturday and another young man from Telangana's Mancherial was arrested, senior police officer KCS Raghu Vir told news agency PTI.
The senior police official said they suspect the role of more people and may make further arrests.
Condemning Ms Sharmila's allegations, Andhra Pradesh minister Paritala Sunitha said the TDP has nothing to do with the social media posts and that the party will condemn such derogatory posts not only against YS Sharmila, but also against any other woman.
Andhra Pradesh Chief Minister and TDP president N Chandrababu Naidu had condemned YS Sharmila's allegations and criticised her for lodging a complaint with Telangana Police instead of filing a complaint in Andhra Pradesh.
(With inputs from IANS and PTI)