Inspector K Purnachander said he allegedly committed suicide by hanging himself from a ceiling fan at his residence.
"He was 35 years old. Sai and his wife were living separately following a dispute between them. His wife had recently filed a complaint against him alleging domestic violence," he said.
Sai made his debut in the Telugu film industry in 2001 and acted in hit films such as Bommarillu and Ammayilu Abbayilu.
The police official said a case had been filed and they were examining a video clip purportedly recorded by Sai before his death.