Vijayawada police have today arrested Tollywood character artiste Gracy and an executive engineer working in the Irrigation department as they were caught red handed while prostituting.

Engineer Nageswara rao and Gracy were together caught by Vijayawada Task Force police in a Government guest house in the wee hours of Monday. The police raided the guest house on a tip off.

It is learnt that Gracy came last night to Vijayawada at the instance of Nageswara rao and they both partied together along with some others in the irrigation department guest house.

Police however refused to give more details on the arrests. Both of them are being questioned by police. Nageswara rao is already involved in some corruption cases, according to sources.