The Guardia Civil were called to the scene, and arrived to find medics attending to Rottman. He was immediately transferred to the La Linea hospital, where he died from his injuries.
Devinder was arrested at his home, following statements made by witnesses at the restaurant.
Sotogrande is a favourite spot of Sarah Ferguson and her daughters Beatrice and Eugenie, who often holiday in the area.
The restaurant owner, who asked not to be named, said the altercation "happened very quickly".
He said Rottman had appeared to be taking pictures of everyone, saying "it all seemed very innocent to me".
The restaurant owner said Devinder got "got very upset all of a sudden" and punched Rottman before anyone "could stop him".
A source at the local Guardia Civil, which is investigating, said: "We believe he died as a result of the single punch he received but this is yet to be confirmed by the post-mortem results."
Devinder appeared in front of an investigating magistrate at a court in La Linea this morning but it is not known if he was remanded in custody or released on bail.
A spokesman for the Civil Guard based in Algeciras, confirmed the incident had occurred after "the victim had been recording the British man's daughter".
The source said it was thought that the two men did not know each other.
With big houses and golf courses overlooking the blue waters of the Mediterranean, Sotogrande is one of the most upmarket resorts in a southern region popular with British tourists.
- Daily Mail