Besides Prasad, the police also took Kishore and Anji Reddy into custody.
He said the investigations revealed that Jayaram's niece Shikha Chowdary had no role in the murder.
According to police, main accused Rakesh Reddy had hatched a conspiracy to extort money from Jayaram. Surya Prasad and Kishore brought Jayaram to his house in posh Jubilee Hills and it was here that the businessman was murdered. Anji Reddy reached Rakesh Reddy's house after the murder but did not inform police.
On allegations that Rakesh Reddy spoke to couple of police officers after the murder, the DCP said they were conducting investigations.
He said while Rakesh Reddy had relations with politicians but there was no evidence of any political involvement in the crime.
The crime was first investigated by the Andhra Pradesh Police, which arrested Rakesh Reddy and his security guard. The case was later transferred to Telangana after it was revealed that Jayaram was murdered at a house in Hyderabad and his body was dumped in Andhra Pradesh.
Jayaram's wife Padmashri has also demanded a probe against Shikha, who was allegedly in a relationship with Rakesh Reddy.
She had said that after the murder, Shikha barged into their house in Jubilee Hills and that some key documents and valuables were found missing subsequently.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)