HYDERABAD: The Enforcement Directorate’s Hyderabad unit has arrested Sandu Purnachandra Rao, the former director of Sahiti Infratec Ventures India Pvt Ltd (SIVIPL), under the Prevention of Money Laundering Act (PMLA) for allegedly defrauding homebuyers of crores of rupees.
Rao was taken into custody on Monday and presented before a special PMLA court in Nampally on Tuesday, where he was remanded to 15 days of judicial custody.
Sahiti Infra is charged with defrauding homebuyers of approximately ₹360 crore.
The ED initiated its investigation following an FIR filed by Telangana Police against SIVIPL, its managing director B. Lakshminarayan, and others, highlighting a “pre-launch offer” for a gated residential project that resulted in substantial amounts of money being collected from prospective buyers who received neither flats nor refunds, impacting over 700 homebuyers.
Subsequently, additional FIRs emerged based on similar grievances related to other projects. Investigators found that the company lacked the necessary RERA or HMDA approvals and did not maintain an escrow account. Instead, they collected funds in cash and deposited them into several bank accounts.
According to the ED, Rao collaborated closely with Lakshminarayan in raising over ₹800 crore from illegally initiated projects. Notably, over ₹216.9 crore in cash was collected from buyers for the “Sarvani Elite” project without any official record.
The investigation revealed that Rao misappropriated around ₹126 crore from SIVIPL, which included over ₹50 crore in cash. The situation came to light after a forensic audit prompted Lakshminarayan to file complaints, leading the police to register three FIRs against Rao.
Subsequently, Rao and Lakshminarayan reached an agreement, whereby Rao transferred 21 properties registered under Sahiti Group employees to Lakshminarayan in exchange for the withdrawal of legal cases.
Rao is also accused of utilizing the proceeds of crime to acquire assets in the names of family members and affiliated entities, including Royal Nirman Infra Projects Pvt Ltd, Mahogany Farmlands Projects Ltd, and Sreegruha Estates Pvt Ltd.
Previously, the ED seized incriminating documents, digital devices, and froze several accounts during their searches. Assets valued at ₹161.5 crore have been provisionally attached. Lakshminarayan was arrested by the ED on September 29, 2024, and is currently in judicial custody.
