ED Expands Probe into Sahiti Infratec's Unapproved ₹800-Crore Real Estate Projects
On January 5, a special court in Hyderabad took cognizance of a supplementary prosecution complaint filed by the Directorate of Enforcement's (ED) Hyderabad Zonal Unit under the Prevention of Money Laundering Act (PMLA). The complaint names B. Lakshminarayana and Sandhu Purnachandra Rao, former associates of Sahiti Infratec Ventures India Pvt. Ltd., in connection with alleged financial irregularities tied to a series of residential real estate projects.
The enforcement action follows earlier criminal cases registered by the Telangana police. These cases, investigators say, stemmed from complaints by buyers and investors who alleged that promised residential flats were neither delivered nor refunded, despite large upfront payments collected during what were marketed as “pre-launch” offers for gated residential developments.
According to the Enforcement Directorate, Sahiti Infratec Ventures India Pvt. Ltd. and related group entities launched and marketed projects without securing mandatory approvals from the Real Estate Regulatory Authority (RERA) and the Hyderabad Metropolitan Development Authority (HMDA). Investigators also allege that the company did not maintain an escrow account, a requirement designed to protect homebuyers’ funds.
Instead, funds received from customers were deposited into multiple bank accounts. The agency contends that this structure made it difficult to track how the money was used and whether it was deployed for construction at all. Several first information reports were subsequently filed after buyers complained of delays, non-delivery, and a lack of refunds across multiple projects promoted by the group.
In its filings, the Enforcement Directorate has alleged that more than ₹800 crore was collected through the sale of inventory in projects that lacked requisite approvals. A substantial portion of these receipts, the agency claims, involved cash transactions that were not properly recorded in the company’s books.
Investigators further allege that significant amounts were withdrawn in cash and diverted to overseas accounts. These transfers, according to the complaint, were carried out by B. Lakshminarayana and members of his family, forming a key part of the agency’s money-laundering case. The pattern of withdrawals and transfers is cited as evidence of an attempt to conceal and siphon off proceeds generated from the real estate ventures.
The enforcement complaint also details allegations against Sandhu Purnachandra Rao, who served as director and headed sales and marketing at the company. The agency claims Rao misappropriated around ₹126 crore, including more than ₹50 crore in cash.
As part of a subsequent settlement, Rao is alleged to have transferred 21 immovable properties. Investigators have presented these transfers as relevant to tracing the flow of funds and determining the disposition of assets linked to the alleged offences.
