ED Arrests Sahiti Infratec MD in ₹360 Crore Real Estate Fraud: Hundreds of Homebuyers Defrauded
The Enforcement Directorate (ED) recently arrested Boodati Lakshminarayana, the managing director of Sahiti Infratec Ventures India Pvt. Ltd., for his involvement in a large-scale fraud amounting to over ₹360 crore. The case revolves around a "pre-launch offer" scam, where the company collected funds from more than 700 homebuyers with promises of delivering residential units, including apartments and villas, which never materialized.
Lakshminarayana's company, Sahiti Infratec, did not have the required permissions from regulatory authorities like the Real Estate Regulatory Authority (RERA) or the Hyderabad Metropolitan Development Authority (HMDA). Despite this, the firm advertised a world-class gated residential community and collected substantial sums from unsuspecting investors. Instead of utilizing the funds for the promised construction, Lakshminarayana diverted a significant portion of these investments into personal bank accounts and those of his family members. Additionally, a large sum was reportedly withdrawn as cash, raising further concerns of misappropriation.
This fraudulent scheme has its roots in Sahiti Infratec's various real estate projects, which spanned Hyderabad and surrounding regions. The firm managed to collect money from buyers without the security of escrow accounts, which are usually required to ensure that funds are used exclusively for the designated projects. Many of the funds were laundered, and Lakshminarayana reportedly purchased immovable properties through proxies or benami accounts. His actions directly impacted hundreds of families who were left without their promised homes or refunds.
The ED launched an investigation after multiple complaints were lodged against Sahiti Infratec by the duped investors. These complaints led to the registration of FIRs by the Hyderabad Central Crime Station (CCS), prompting the ED to step in under the provisions of the Prevention of Money Laundering Act (PMLA). The authorities had been monitoring Lakshminarayana's activities for several months, during which time he evaded multiple summonses by submitting a fake medical certificate. He was also on the run for an extended period before his eventual arrest on September 29, 2024.
As part of the investigation, the ED conducted raids on various premises associated with Sahiti Infratec, including its offices in Hyderabad and Vijayawada, and seized incriminating documents and digital records. Furthermore, the ED provisionally attached assets worth ₹161.5 crore, including movable and immovable properties linked to the fraud.
Source: X
This case is one of the most significant real estate frauds to come to light in recent times in India. The scale of the scam highlights the risks associated with pre-launch offers in the real estate sector, where buyers often invest based on promises that may never be fulfilled. While Lakshminarayana has been remanded to judicial custody until October 14, 2024, further investigations are ongoing, and additional arrests may follow as authorities continue to unravel the full extent of the fraud.
