G Anand, cousin of B Kiran, who had already been arrested by city police on January 27, was arrested after he surrendered before the office of a local TV channel, Deputy Commissioner of Police (West Zone) V Satyanarayana told reporters here.
"Anand confessed that he and his cousin Kiran committed the offence since they needed money for his polio-related surgery and his cousin's pilot training fee," the DCP said, adding that Anand wanted to operate his polio deformity to become a dancer.
Hyderabad Police Commissioner Anurag Sharma had said earlier that while investigation was in progress, Kiran surrendered before a local media house on Sunday night and claimed that he merely wanted to expose loopholes in the security system.
After he confessed, the police searched his room here and recovered gold and other valuables weighing 15.5 kg.
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Investigation into the case is not yet complete and police plans to seek the duo's custody for their interrogation, the DCP said.
The senior police officer said that extensive media reports about the incident and massive checking by the police also prompted Kiran and Anand give themselves up.