Actor Mahesh Babu Summoned by ED in Real Estate Money Laundering Probe

Telugu actor Mahesh Babu has been summoned by the Enforcement Directorate (ED) in a money laundering investigation involving Hyderabad-based real estate firms. While the actor is not currently listed as an accused in the case, officials are seeking clarity on certain financial transactions tied to real estate projects he had endorsed.

According to reports from PTI, Mahesh Babu, 49, has been asked to appear before the ED's Hyderabad office on April 28, 2025. The summons is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA). The agency recently conducted searches at multiple locations in Hyderabad linked to real estate companies, primarily Surana Group and Sai Surya Developers.

The investigation follows a complaint filed by Telangana Police, alleging that these firms engaged in fraudulent practices in the sale of plots. The ED's probe is focused on the financial trails and alleged misuse of investor funds.

The case is notably connected to a real estate project called Green Meadows, promoted by Sai Surya Developers. Mahesh Babu served as the brand ambassador for this project. The firm’s owner, Kancharla Satish Chandra Gupta, is already under police scrutiny for failing to deliver the promised development and allegedly misleading buyers.

While Mahesh Babu’s role is limited to promotional activities, the ED wants to understand the flow of funds related to the endorsement. Sources indicate that he received approximately ₹5.9 crore from the developers — a mix of cheque payments and cash — for his brand association. The agency is examining whether any part of this payment was linked to the proceeds of crime as defined under the PMLA.

Investigating officials have clarified that Mahesh Babu is not being treated as an accused at this stage. His appearance is aimed at gathering details about the endorsement payments and understanding whether he had any knowledge of the alleged irregularities.

PTI’s sources suggest that the actor may have signed on for the endorsements in good faith, without awareness of any underlying fraudulent intentions by the developers. It is not uncommon for public figures to endorse commercial ventures, and the agency is looking at this aspect with caution.

The allegations against Sai Surya Developers and other associated firms are serious. The ED has stated that the developers engaged in unauthorised land layouts, sold the same plots to multiple buyers, and accepted advance payments without proper documentation. In some cases, buyers were reportedly promised registration and possession of land that was either disputed or never developed.

The agency added that these activities were carried out with deliberate intent to cheat, resulting in the generation of illegal income. The money, according to the ED, was laundered and diverted into personal and affiliated accounts.

One of the main accused, Narendra Surana of Bhagyanagar Properties Ltd., is also under scrutiny. Together with Gupta, they are alleged to have orchestrated schemes targeting unsuspecting buyers under the guise of genuine property development.

This case is among a series of actions taken by central agencies to investigate financial irregularities in the real estate sector, particularly involving projects that have seen delays or delivery defaults. Hyderabad has witnessed a construction boom in recent years, but there have also been rising complaints about misleading advertisements, slow execution, and unfulfilled promises from certain developers.

The ED’s decision to summon a high-profile public figure such as Mahesh Babu suggests a broader attempt to trace the use of celebrity endorsements in boosting investor confidence for projects that may not have met legal or ethical standards.

While Mahesh Babu’s name in the investigation has drawn public attention, the primary focus remains on the financial misconduct of the developers. His cooperation with the agency is expected to assist in clarifying the legitimacy of payments made and the contractual terms of his association with the firms.

Further developments in the case are awaited, particularly after the actor’s scheduled appearance before the ED on April 28.