Mahesh Babu Faces Legal Notice in Rs 34 Lakh Real Estate Fraud Case
Mahesh Babu, the renowned actor, is facing a legal notice from the Ranga Reddy District Consumer Forum in connection with a real estate fraud case. The complaint alleges that he, as a brand ambassador, misled buyers into purchasing plots in an unauthorized project.
Mahesh BabuReal Estate FraudMoney LaunderingSai Surya DevelopersSurana GroupReal Estate NewsJul 07, 2025
The complaint was filed by a Hyderabad-based doctor, who alleged that she and other individuals were cheated by two Hyderabad-based real estate firms, Sai Surya Developers and Surana Group. These firms were advertising unauthorized real estate projects. Mahesh Babu, who served as the brand ambassador for a project called ‘Green Meadows’ under Sai Surya Developers, received Rs 5.9 crore as payment—Rs 3.4 crore via cheque and Rs 2.5 crore in cash. The actor has been named as the third respondent for allegedly misleading buyers.
The complainants were misled by the advertisements and ended up purchasing plots worth Rs 34.80 lakh each in the Balapur village, under the impression that a legitimate layout existed. However, it was later revealed that they had been cheated out of their money.
The investigation is being conducted under the Prevention of Money Laundering Act, 2002, pertaining to the alleged non-delivery of real estate projects. Both firms are accused of repeatedly selling the same plot of land to unsuspecting buyers after receiving advanced payments.
On April 16, the ED carried out a probe at several locations linked with the case, including premises in Secunderabad, Jubilee Hills, and Bowenpally. According to the Times of India, financial transactions amounting to Rs 100 crore by the firms have been flagged as illegal activity.
This case highlights the importance of due diligence and transparency in the real estate sector, especially when celebrities are involved in promoting projects. Consumers are advised to verify the authenticity of real estate projects before making any investments.
Frequently Asked Questions
What is the main issue in the legal notice issued to Mahesh Babu?
The main issue is that Mahesh Babu, as a brand ambassador, allegedly misled buyers into purchasing plots in an unauthorized real estate project called ‘Green Meadows’.
How much money did the complainants lose in this real estate fraud case?
The complainants lost Rs 34.80 lakh each in the Balapur village, under the impression that the real estate project was legitimate.
Which real estate firms are involved in the fraud case?
The real estate firms involved in the fraud case are Sai Surya Developers and Surana Group.
What is the role of the Enforcement Directorate (ED) in this case?
The Enforcement Directorate (ED) is investigating the case under the Prevention of Money Laundering Act, 2002, looking into the alleged non-delivery of real estate projects and illegal financial transactions.
How much money did Mahesh Babu receive as payment for his role as brand ambassador?
Mahesh Babu reportedly received Rs 5.9 crore as payment for his role as the brand ambassador, with Rs 3.4 crore via cheque and Rs 2.5 crore in cash.
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