Highly-decomposed body of the 55-year-old producer of superhits like 'Shankar Dada MBBS' and 'Shankar Dada Zindabad' was recovered from Gouthumi river near Gogula Lanka village in the district, they said.
"The body was identified with the help of staffers of Anand Regency hotel where Prasad had checked in on Sunday," said Mumdivaram Circle Inspector Mohammed Ali.
Prasad was chairman of the Anand Regency group of hotels.
According to police, Prasad went missing on Monday morning after he stepped out for jogging, clad in a track suit.
Police said Prasad's body was sent for post mortem and the cause of his death was being investigated.