Khushboo apprehended arrest in a cheating complaint filed by T.M. Varkey, the US based father-in-law of her brother Abdullah Khan.
The actress claimed in her petition that Varkey had wrongly filed a complaint with the Chennai City Police for criminal breach of trust and cheating.
Khushboo said in her petition that Khan had married Sherine Varkey in 1997 and subsequently her father T.M. Varkey gave $16,400 in two instalments to help his son-in-law produce a movie in Kannada.
The money was sent to the actress's account, which she promptly withdrew and handed over to her brother, she said.
Khushboo averred that she had only been the conduit for the money.
The actress had been recently assailed for casting aspersions against Tamil women in matters of chastity.