The 46-year-old industrialist has been accused of maligning Karti Chidambaram's image on micro-blogging site Twitter while tweeting on Karti's properties claiming that the Union Finance Minister's son has "amassed" more wealth than Congress President Sonia Gandhi's son-in-law Robert Vadra.
In another tweet, the industrialist also claimed that being an Tamilian, he felt "bad to have sent P Chidambaram to national politics."
Puducherry police summoned Ravi for questioning on Tuesday and arrested him a day after. Ravi has been an active supporter of India Against Corruption (IAC) in the region.
Defending their act of arresting Ravi, police informed that the accused was booked under Section 66(1) (hacking with computer system) of the Information Technology Act following a legal complaint lodged by Karti Chidambaram.
According to Section 66(1), police can take actions against a person who with the intent to cause wrongful loss or damage to the public or any person, destroys or deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means, commits hacking.
Soon after Ravi's arrest, Probir Banerjee, the president of Pondi Citizen Action Network (CAN) criticised police decision terming the act as "undemocratic". Mr Banerjee was quoted as saying, "The police action is completely unacceptable. Are we living in a goonda raj? Of late anyone talking about the nexus between the political class and corporates is targeted."
According to sources, Ravi may face imprisonment up to three years or a fine up to Rs 2 lakh or both if he would be convicted. The industrialist, however, has been granted bail.