Mr Nisham himself has been investigated over his fleet of luxury cars, which includes a Bentley, Rolls-Royce, Aston Martin and a Jaguar among others.
He also made headlines when he told officers who arrested him for drunk driving that there was not a police station in Thrissur which was fit to park his Rolls-Royce in.
He is known in India as a 'beedi baron,' one of a powerful group of multimillionaires who produce local cheap cheroots linked to high cancer rates.
His home has been raided by narcotics police who seized cocaine.
Inspector General of Police T.J. Jose declined to comment on claims that influential Congress Party leaders and Muslim politicians had offered a cash payment to the victim's family to settle the case.
Mr Chandrabose was attacked in the early hours of January 29 as Mr Nisham returned to Thrissur's Shoba City apartment complex where he kept a flat.
As the guard checked his Humvee's registration plate, Mr Nisham is alleged to have lost his temper.
"Mr Chandrabose was a little late opening the gate and the accused hit him with his car. He tried to escape but Mr. Nisham pulled him out and hit him with an iron rod. The victim has a boy and a girl, both students", said Mr Jose.