Rakhi was forced to pack up Sunday night and leave the city as police insisted that she should not be allowed to perform. The show organisers had apparently failed to mention her name while taking permission from the police to stage the show at Vijaybhaskar Reddy indoor stadium.
However, other performers including singing star Vasundhara Das and Telugu film actresses Sangeetha and Tanu Rai performed.
The show was held by a real estate firm as part of its annual celebrations. The organisers had taken prior police permission for the event, but failed to mention the names of the performers including Rakhi.
After the organisers announced through advertisements in newspapers that Rakhi would also perform, the police swung into action and made it clear that they would not allow any show by the controversial performer.
Denied permission to perform, Rakhi left the city in a huff. She was to leave for Mumbai on Monday but advanced her flight.
Jubliee Hills police inspector M. Srinivas Rao said: "Allowing her to perform without permission could have led to a law and order problem."
According to police, the organisers had sought permission only for presentation of awards to the company employees, a lucky draw and a light musical programme. About 800 people were invited for the event. The organisers had even informed police that they were making their own security arrangements and did not require any security by police.
However, after learning that Rakhi would also perform, dozens of policemen descended at the venue and said they would not allow any performance by her.
Her alleged obscene performance, costumes and suggestive gestures at a show recently in Kolhapur in Maharashtra had sparked a row with police registering a case against her. She was later denied permission for many shows in that state.