The accused G Raj Kumar (52), was arrested and the cell phone worth Rs 13,000 was recovered from him, S Raman, Detective Sub-Inspector (DSI), attached to Musheerabad Police Station said.
Dattatreya is the Union Minister of State for Labour and Employment.
The cell phone was stolen on May 15 when it was kept on charging in the visitor's room of the Dattatreya's house at Ram Nagar here after which a complaint was lodged and police registered a case under section 380 (theft in dwelling house) of the IPC.
Kumar was planning to dispose of the cell phone, police said.