Sriramulu, who joined BJP recently, had issued a cheque but it was dishonoured, the complainant, Somashekar, President of BSR Congress Mysore district unit, alleged, police said.
In the complaint, registered with Bellary rural police, Somashekhar alleged he was promised ticket for Raichur Lok Sabha constituency or an MLC seat and when he approached Sriramulu for not honouring the promise, he was threatened.
Sriramulu, however, dismissed the allegations as an attempt to tarnish his image and a "political conspiracy" against him. He said he would face the issue legally.
Sriramulu, a one-time close associate of former minister and mining baron Janardhana Reddy, had floated BSR Congress two years ago but rejoined BJP, leaving his outfit. Senior BJP leader Sushma Swaraj had opposed his entry into the party.
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