In a video which has gone viral, MLC Farooq Hussian is reportedly seen threatening the woman.
A case was registered against the member of legislative assembly under relevant sections of IPC based on a complaint by the 53-year-old NRI woman, Nampally police station inspector R Sanjay Kumar told PTI.
The woman said that she came all the way from New York to Hyderabad yesterday to regain the possession of her property.
Hussain had joined the TRS last year after quitting the Congress.
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The incident took place this morning when the woman went to the apartment and confronted Hussain about the delay in vacating her flat.
She claimed that despite repeated reminders, the politician had "refused" to vacate the apartment.
"I had given my apartment on rent to MLC Farooq Hussain. He was not vacating the flat for the past two years, and whenever I used to call him from the US, he used to say that I can never vacate him from the flat," the woman told reporters, adding that she waited for two years hoping that Hussain would walk out of her property.
In the video, Hussain purportedly asked her to do whatever she could to get him vacated.
"Wherever you want to go you can go," he is heard saying.
When the woman told him that she will approach the media as well as Chief Minister K Chandrasekhar Rao (over the matter), Hussain said, "Wherever you want to go...you go and get it vacated..."
"As he was getting wild, we immediately left the place and approached the police," she said.
The woman further accused the MLC of threatening her and her brother that he would send them to jail.
"There was no agreement (with regard to the premises with him)...In fact for the past six months he did not pay the rent. I just want my apartment back," she said.
The police said the matter was being investigated.
Meanwhile, the politician said he had taken the apartment on rent from Mohd Samad.