The Enforcement Directorate (ED) has arrested Sandu Purnachandra Rao, former director of Sahiti Infratec Ventures India Pvt Ltd (SIVIPL), in connection with an alleged money laundering case involving over ₹800 crore. Rao was taken into custody and presented before the special PMLA court in Nampally where he was remanded to 15-day judicial custody.
Sahiti Infra is accused of duping more than 700 homebuyers by collecting ₹360 crore for residential projects that were never delivered. The investigation by the ED was launched following an FIR registered by Telangana Police against SIVIPL, its managing director B. Lakshminarayan, and others. The complaints detailed the company’s advertisement of pre-launch offers for gated residential projects, collection of large sums from prospective buyers, and failure to refund payments or deliver the promised flats.
The probe revealed that SIVIPL did not possess the required RERA or HMDA approvals and did not maintain escrow accounts for collected funds. Instead, payments were accepted in cash and deposited into multiple bank accounts. ED investigations further found that Rao collaborated with Lakshminarayan to mobilize over ₹800 crore through illegally launched projects. In the Sarvani Elite project alone, the company collected more than ₹216.9 crore in cash, without recording the amounts in official accounts.
A forensic audit uncovered that Rao had misappropriated around ₹126 crore from SIVIPL, including more than ₹50 crore in cash. Following the audit, Lakshminarayan lodged complaints, leading to three FIRs against Rao. Subsequently, Rao allegedly reached a settlement with Lakshminarayan, transferring 21 immovable properties registered in the names of Sahiti Group employees and others to Lakshminarayan’s name in exchange for the withdrawal of the cases.
Rao is also accused of using the proceeds of crime to acquire properties under the names of his family members and associated entities, including Royal Nirman Infra Projects Pvt Ltd, Mahogany Farmlands Projects Ltd, and Sreegruha Estates Pvt Ltd. Earlier, ED had seized incriminating documents, digital devices, and frozen several accounts during searches. Assets valued at ₹161.5 crore were provisionally attached in connection with the ongoing investigation.
Lakshminarayan, the managing director, was earlier arrested by ED on September 29, 2024, and remains in judicial custody. The case highlights systemic irregularities in property launches where approvals are bypassed, funds are collected in cash, and investors are left vulnerable. ED’s actions underline its efforts to curb financial crimes in the real estate sector and recover misappropriated assets for affected homebuyers.
Image source- enforcementdirectorate.gov.in
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