Amulya has denied reports suggesting that she agreed to kiss Ratnaja to secure roles in his future films.
Mobile phone photos of the duo kissing surfaced today and it has been claimed that the director told the Kannada actress that he would cast her in the lead role in his next two movies if she agreed to kiss him.
The pictures were apparently leaked after Ratnaja refused to pay blackmailers 10 million Rupees (around £150,000).
"Ratnaja had pictures of intimate moments he shared with Amulya during the shooting of Premism in September last year saved on his mobile phone," a source told Mid Day.
"The phone was misplaced and it found its way to the blackmailers, who began calling Ratnaja and demanding he pay them Rs 1 crore (10 million Rupees). When they did not get the money, they made the pictures public."
Amulya said: "I am not in a position to say anything. Following the promotional campaign for Premism, I have not been in touch with Ratnaja. My intentions are clear.
"I don't have need to resort to do such things for just two movies. I have turned down over 40 films after Cheluvina Chittara."