The accused T Ravishankar Prasad, had rented a portion of the building in Singadigunta area in the city and used it as his office-cum-residence, they said.
The building had a common bathroom and Prasad installed a web-cam inside it, which was directly connected to his computer system, police said adding that the accused used to film women while they were bathing.
However, a young woman resident of the building spotted a beam of light in the bathroom yesterday. She then pulled out a wire and found that there was a hidden web-camera placed inside.
Banjara Hills booked a case against Prasad, who was subsequently arrested.
Locals alleged that the accused might have been indulging in such acts for the past few years and demanded that police should seize the hard disks of his computer.