The case was registered yesterday by assistant engineer M Vijayakumar Babu after a breach in canal bund was spotted, Nuzvid mandal DSP V Srinivasa Rao said.
Irrigation officials did not rule out a possibility of sabotage as it was found that the canal bund under tunnel was broken.
According to officials, there were no technical issues and the damage looked manmade.
Chief Minister N Chandrababu Naidu immediately dispatched Water Resources Minister D Uma Maheswara Rao and Irrigation officials to the spot.
No one has been taken taken into custody so far and the investigation are underway, the DSP said.
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