Mahesh Babu issued notice by Ranga Reddy Consumer Commission in real estate case

Hyderabad: The Ranga Reddy District Consumer Disputes Redressal Commission has issued notices to actor Mahesh Babu in connection with a complaint involving Sai Surya Developers, where the actor served as brand ambassador.

The complaint names M/s Sai Surya Developers as the first respondent, company owner Kancherla Satish Chandragupta as the second, and Mahesh Babu as the third respondent.

According to the petitioners, a doctor and another individual, they paid ₹34.8 lakh for plots in Balapur village after being influenced by promotional material featuring Mahesh Babu and reassurances from the developer. They later discovered that the layout lacked necessary approvals.

After repeated requests, the developer returned only ₹15 lakh in installments. When further attempts failed, the buyers approached the Consumer Commission to recover the remaining amount. The Commission has directed all parties to appear for a hearing on Monday.

It was learnt that Mahesh Babu was summoned by the Enforcement Directorate (ED) on April 28, 2025, for questioning regarding a money laundering investigation involving two Hyderabad-based real estate firms, including Sai Surya Developers and the Surana Group.

Investigators said Mahesh Babu was paid ₹5.9 crore to promote Sai Surya’s ventures, ₹3.4 crore by cheque and ₹2.5 crore in alleged cash payments. The ED suspects the cash component may be linked to laundered funds.

The ED’s probe is based on complaints against Narendra Surana, director of Bhagyanagar Properties Ltd., and K. Sathish Chandra Gupta of Sai Surya Developers. Both are accused of collecting large sums from buyers by offering plots in unapproved layouts, selling the same property to multiple clients, and providing fake registration documents.

Officials noted that Mahesh Babu’s endorsement played a role in drawing investors to these ventures. While the actor is not accused of direct involvement in the alleged fraud, the ED is reviewing the financial details of his promotional arrangements.

Searches conducted by the ED on April 16 reportedly led to the recovery of documents pointing to irregular transactions worth over ₹100 crore. Authorities are working to seize assets purchased with these funds and are investigating the flow of money to individuals, including public figures associated with the firms.