Mahesh Babu Faces Legal Notice in Real Estate Scam
Telugu superstar Mahesh Babu has been served a legal notice in connection with an alleged real estate fraud. The case highlights the importance of due diligence in celebrity endorsements.
Mahesh BabuReal Estate FraudLegal NoticeSai Surya DevelopersConsumer CourtReal Estate NewsJul 09, 2025
The complaint stems from a Hyderabad-based doctor who invested ₹34.80 lakh in what turned out to be a non-existent property project. According to the allegations, the real estate company leveraged Mahesh Babu's celebrity status to promote their residential project, which attracted numerous investors who trusted the venture primarily due to the actor's association. However, investigations revealed that the promised development project never materialised, leaving investors in financial distress. The case has raised serious questions about the due diligence celebrities should exercise before endorsing real estate projects.
Mahesh Babu appeared in Sai Surya Developers' ad along with his wife and children. After a superstar gets associated with the projects, people easily trust the project. The woman had also invested ₹34.80 lakh in this Balapur property. However, it later emerged that no such project was ever started.
After the fraud came to light, the woman asked for a refund, but the builders returned only ₹15 lakh in small amounts citing financial constraints. When the builders did not return the money despite assurances, the woman filed a complaint in Consumer Court.
Mahesh Babu's name had come up in a money laundering case this year. In April 2025, the ED (Enforcement Directorate) questioned Mahesh Babu in a money laundering case related to Sai Surya Developers and Surana Group. The investigation revealed that Mahesh Babu was given ₹5.9 crore upon joining the real estate company. A large amount of this was given in cash. Although Mahesh Babu has been questioned for investigation in both these cases, he has not been made an accused in either case.
These days Mahesh Babu is busy shooting for an untitled film being directed by SS Rajamouli. Priyanka Chopra will also appear with him in this film. This will be a jungle adventure based film.
Frequently Asked Questions
What is the legal notice Mahesh Babu received about?
Mahesh Babu received a legal notice in connection with an alleged real estate fraud involving the company Sai Surya Developers, where he served as the brand ambassador.
How much did the investor lose in the real estate scam?
The investor, a Hyderabad-based doctor, invested ₹34.80 lakh in the non-existent property project and only received ₹15 lakh in refunds.
Why did Mahesh Babu's name come up in a money laundering case?
Mahesh Babu was questioned by the ED in April 2025 in a money laundering case related to Sai Surya Developers and Surana Group, where he was given ₹5.9 crore, partly in cash.
What is the new film Mahesh Babu is working on with SS Rajamouli?
Mahesh Babu is currently shooting for an untitled jungle adventure film directed by SS Rajamouli, in which Priyanka Chopra will also appear.
What questions has the case raised about celebrity endorsements?
The case has raised serious questions about the due diligence celebrities should exercise before endorsing real estate projects, as their association can significantly influence investor trust.
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