ED Arrests Sahithi Infra Director in Rs.360 Crore Fraud Case
Hyderabad: Enforcement Directorate arrested Sandu Purnachandra Rao, Director of Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL) and head of the Sales & Marketing team, on Tuesday under the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court (PMLA), Nampally, Hyderabad, on Tuesday and remanded to 15 days judicial custody.
15-Day Custody for Sandu Purnachandra Rao
The probe stems from an FIR filed by Telangana Police against SIVIPL, B. Lakshminarayan, and others for floating “Pre-Launch Offers” of luxury gated community projects, collecting huge sums from homebuyers, but failing to deliver flats or refund money. Over 700 buyers were allegedly defrauded of nearly ₹360 crore. ED found that SIVIPL lacked RERA/HMDA approvals and did not maintain an escrow account, diverting investor funds into multiple accounts and cash dealings.
Illegal Cash Collection and Misappropriation Exposed
Investigators revealed that Rao assisted B. Lakshminarayana in mobilizing more than ₹800 crore from illegally launched projects. He collected over ₹216.91 crore in cash in the name of Sarvani Elite project alone, without recording it in company accounts. ED also found his involvement in misappropriation of around ₹126 crore, including over ₹50 crore in cash. Following a forensic audit, Lakshminarayana lodged three FIRs against Rao for fund misappropriation.
To withdraw those FIRs, Rao allegedly entered a settlement with Lakshminarayana and transferred 21 immovable properties through benami names for his benefit. He also purchased properties in the names of family members and entities like Royal Nirman Infra Projects Pvt Ltd, Mahogany Farmlands Projects Ltd, and Sreegruha Estates Pvt Ltd using proceeds of crime.
Earlier, ED had attached assets worth ₹161.50 crore, frozen bank accounts, and seized digital records. Lakshminarayana, Managing Director of SIVIPL, was arrested in September 2024 and remains in judicial custody. Further investigation is ongoing.