The notice, served last night, asked the channel to reply within three days as to why appropriate legal action should not be initiated against it, contending the audio tape it aired was "defamatory".
"Since the programme telecast on June 7 at around 8.30 pm contained material disturbing the public tranquillity, affecting the maintenance of law and order as it in violation of Section 5 and Rule 6 of cable TV news network Act, as the programme is defamatory deliberate, false with suggestive innuendos and half-truths," the notice read.
Telangana TDP MLA Revanth Reddy and two others were arrested and remanded for allegedly trying to bribe the nominated MLA.
The airing of the audio tape has led to a slugfest between the TDP and TRS, the ruling parties in Anhdra Pradesh and Telangana respectively.
Reacting to the notice slapped on the channel, its CEO Narayan Reddy said police had no right to issue notices without verifying authenticity of the footage scientifically.
Coming out strongly against the notice issued to the channel, Telangana Union of Working Journalists said it was "undemocratic, unconstitutional and disrespectful approach of AP CM".
Journalists held a demonstration before the DGP's office and scores of them were taken into preventive custody by police. The protesters raised slogans against Chief Minister N Chandrababu Naidu and AP Police.
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