HYDERABAD: On Thursday, Enforcement Directorate (ED) officials interrogated actor Jagapathi Babu regarding the Sahiti Infra case. Investigations revealed that his financial interactions with the company were primarily legitimate. Sources indicated that the actor was summoned to clarify his financial transactions with Sahiti Infra, which is being scrutinized for allegedly defrauding numerous homebuyers. Jagapathi Babu had promoted the real estate company in various advertisements and received payment for his endorsements. The ED confirmed that there are no criminal proceeds associated with him.
The ED’s prosecution complaint elaborated on the actions of Sahiti Infratech Ventures India Private Limited (SIVIPL), spearheaded by Boodati Lakshminarayana, which funneled homebuyer funds improperly. Of the 853 crore collected, 214 crore involved cash that was routed through two sets of accounts. The investigation revealed a money trail indicating that funds received directly from homebuyers or indirectly through hand loans—paid back with homebuyers’ money—were channeled into the personal accounts of promoters Lakshminarayana and his wife, Parvathi.
The complaint highlighted that the company had no escrow account, with funds being collected in cash. Investigators pointed out that 216.91 crore in illegal cash receipts were kept off SIVIPL’s financial records. “This manipulation of finances coupled with the misappropriation of funds is indicative of a premeditated intent and constitutes a criminal conspiracy to defraud investors,” the complaint stated.
Funds Layered and Misappropriated
The investigation disclosed that SIVIPL generated criminal proceeds amounting to 842.15 crore across various bank accounts and in cash. A substantial portion of the money collected from homebuyers was laundered through multiple accounts belonging to SIVIPL and its associated companies before being diverted to the personal accounts of the promoters and their family members for private use. Large sums were also withdrawn in cash directly from either the company’s or promoters’ accounts, with no intention of returning to the firm.
Previously, Hyderabad Central Crime Station (CCS) had initiated 56 criminal cases against entities linked with Sahiti. The ED followed this up by initiating a money laundering investigation under the PMLA and has now presented its prosecution complaint detailing the scam.
