Sandhya Rani’s Sri Sai Ram Enterprises linked to massive investment fraud

Hyderabad: Sri Sai Ram Enterprises of Kukatpally played a vital part in the Sandhya Rani’s fraud, lending credibility, structure, and operational efficiency. The busy Kukatpally office and factory, with 150-300 employees and humming machinery, impressed potential investors during their tours. These visits transformed the accused in the eyes of visitors, turning them from mere claimants to apparent owners. The accused also presented GST and TDS certificates, standard business documents in India, to reinforce their legitimacy.

This Cyberabad EOW investigation into Sandhya Rani's fraud is directly tied to Sri Sai Ram Enterprises of Kukatpally, whose operations are at the heart of both the alleged investment scam and the ongoing inquiry.

Meanwhile, M. Vijaya Bhaskar of Hyderabad complained to the RBI Governor that the Indian Bank's Srinagar Colony Branch had given loans to Sandhya Rani's Sri Sairam Enterprises without sufficient collateral, thereby violating RBI rules. He also noted her accounts stayed active after her arrest, allowing possible jail transactions. Bhaskar requested an independent probe, freezing of accounts, seizure of assets under the SARFAESI Act, and referral to the CBI or SFIO.

Bhaskar told HyderabadMail that Sandhya Rani's business kept hurting victims after her arrest, raising questions about responsibility. He pegged the scam at a tune of Rs 900 to Rs 1000 crores.

Fake orders, Forged invoices, and Circular transactions

The scam operated as follows, according to complaints and police findings it relied on fake purchase orders, forged invoices, and circular transactions to simulate legitimate business activity. After gaining investors trust through site visits and documents, the perpetrators convinced them to pay GST from their own funds, further deepening the appearance of authenticity.

According to the complaint, registered on September 16, was filed by Bhupathi Raju Venkata Narasimha Raju, a 61-year-old businessman from Madhapur, alleging that he lost Rs. 61.91 crore. According to another complaint, filed on September 20 by D Kavitha and her partner D. Pranitha from Gachibowli, they reported a loss of Rs. 85.66 crore.

The accused in both cases are the proprietors and associates of Sri Sai Ram Enterprises, Sandhya Rani, her husband, Namburi Sridhar, their son, N. Koushik, P. Subbaraju, and Ramdas.

A Pattern of Deception

Both complaints emphasize that the operation was carefully planned and executed over a period of time. The approach, which combines industry visits, documentation, and trusted insiders, built credibility before defrauding victims of large sums. Victims and investigators alike described it as highly organized.

FIRs indicate a similar approach in both cases. The accused used P. Subbaraju, as an insider, is placed in upscale residential communities to build trust with neighbors. He introduced them to Sandhya Rani and Namburi Sridhar as successful textile business owners. Subbaraju leveraged his perceived connections to gain further confidence.

To solidify the ruse, the accused gave complainants guided tours of Sri Sai Ram Enterprises, showcasing staff and operations. Bhupathi Raju reported seeing about 150 employees, while Kavitha counted nearly 300 workers. The accused frequently displayed GST and TDS certificates to further build trust.

The accused presented fake purchase orders from organizations such as Yashoda Health Care, Amara Hospitals, and K12 Cart Edu Mart. These were described as urgent, high-value transactions to create a sense of urgency and credibility with investors.

To maintain the deception, the accused instructed victims to set up new partnership firms and private companies, such as Pekeru Traders, Shri Sai Kripa Enterprises, and Fabgrove Fabrics Pvt. Ltd. This made transactions appear legitimate.

Victims were then directed to transfer funds from these newly created or existing company accounts to various shell companies controlled by the accused. This layering of transactions created the appearance of complex, legitimate financial activity, when in reality, the funds circled back to the perpetrators through other front entities, such as Himalayan Foil Solutions, Venkata Padma Enterprises, and Rudra Enterprises.

The accused periodically transferred small amounts to victims, purportedly as profits. This approach, common in Ponzi schemes, appeared to validate the business and encouraged additional investment.

Unraveling and Intimidation

The scheme began to unravel when victims requested the return of their original investments. The accused offered repeated excuses for delays and then abruptly ceased all communication, signaling the collapse of the operation.

When Bhupathi Raju visited the Sri Sai Ram Enterprises office in late July 2025, Ramdas, Sridhar, and Koushik allegedly threatened him and cited their political, financial, and personal influence.

Further, another victim, Kavitha, visited the office, and another accused, Sandhya Rani’s son, N. Koushik, claimed he could use AI technology to transfer funds, making them nearly impossible to trace. Further allegedly threatened more severe consequences.

The EOW registered the cases under the Bharatiya Nyaya Sanhita and the Telangana Protection of Depositors of Financial Establishments Act, 1999.