The two actresses have been identified as Saira Banu, who has played the lead role in few Telugu films, and Jyoti, who has featured as a supporting actress in many films.
While the police has not revealed the identities of those arrested, reports suggest that a woman from Uzbekistan as well as customers were held when the commissioner's task force raided an apartment in the upscale Kundan Bagh neighborhood in the wee hours of Aug 23.
Kundan Bagh is a high-security area with houses of ministers, bureaucrats and VIPs. Sources suggest that the involvement of the high and mighty in the racket can not be ruled out.
This report comes even as the news of Tollywood actors' alleged involvement in a dug nexus emerged as two brothers of actor Ravi Teja were arrested while buying drugs from a Nigerian.
The prostitution case is not the first-of-its-kind as another Telugu film actress, Seema, was arrested for prostitution in 2009 during a raid in Hyderabad"s Tarnaka area.