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Menon was later released on bail on two solvent sureties, they said.
Police had registered a case against him in October on a complaint lodged by popular Malayalam actress Manju Warrier for allegedly threatening and defaming her on social media.
She had on October 22 met Kerala police chief Loknath Behera and filed the complaint.
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Menon, who had helmed the advertisements of several popular brands with Warrier in the lead role, on Thursday said he would fully cooperate with police in the investigation.
“I have explained muy stand to police and my statement has been recorded,” he told reporters.
He entered the film world last year by directing the Mohanlal-Manju Warrier starrer “Odiyan”, which failed to take off at the box-office.
The actress has also sent a letter to the Film Employees Federation of Kerala (FEFKA) about her police complaint against Menon and sought its support.