Raghuveer, who shot to fame with the 1990 hit film "Chaitrada Premanjali", and two others were produced in a court and remanded to judicial custody.
Two women, also allegedly involved in the racket, had been remanded to a rehabilitation centre "Shaktidhama" here, while the others detained were under police custody, police said.
Raghuveer, however, dismissed the allegations levelled against him, saying it was a conspiracy by some of his detractors to defame him.