ED arrests former director of Sahiti Infratec in multi-crore money laundering case

The Directorate of Enforcement (ED), Hyderabad Zonal Office, has arrested Sandu Purnachandra Rao, former director of M/s Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL) and head of its Sales and Marketing team, in connection with a large-scale real estate fraud. He was taken into custody on August 25 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and produced before the Special Court (PMLA) in Nampally the following day. The court remanded him to 15 days’ judicial custody.

The investigation stems from an FIR filed by Telangana Police against SIVIPL, its managing director B. Lakshminarayan, and others for advertising a “pre-launch offer” of a luxury gated community project, collecting vast sums from prospective buyers, but failing either to deliver the promised flats or refund the money. Several further FIRs were registered after more than 700 buyers complained of being defrauded of nearly ₹360 crore in different projects.

According to the ED, SIVIPL had Real Estate Regulatory Authority (RERA) or Hyderabad Metropolitan Development Authority (HMDA) approvals and failed to maintain an escrow account. Instead, funds from buyers were diverted into multiple accounts or collected in cash. Investigators found that Mr. Rao played a key role in assisting Mr. Lakshminarayan to raise more than ₹800 crore through the sale of inventory in illegally launched projects, collecting large amounts of unrecorded cash. In the case of Sarvani Elite alone, over ₹216 crore in cash was allegedly taken from buyers.

The ED further stated that Mr. Rao misappropriated approximately ₹126 crore from the company, of which more than ₹50 crore was in cash. Following a forensic audit, Mr. Lakshminarayan lodged three FIRs against him for embezzlement. To have these withdrawn, Mr. Rao is said to have entered into a settlement and transferred 21 immovable properties, ostensibly in the names of employees and associates, for Mr. Lakshminarayan’s benefit.

Investigators also allege that Mr. Rao channelled proceeds of crime into real estate, purchasing properties in the names of family members and front companies, including Royal Nirman Infra Projects Pvt. Ltd., Mahogany Farmlands Projects Ltd., and Sreegruha Estates Pvt. Ltd.

Earlier, the ED had conducted raids in the case, seizing incriminating documents and digital devices, freezing several bank accounts, and provisionally attaching assets worth ₹161.5 crore. Mr. Lakshminarayan, managing director of SIVIPL, was arrested by the agency in September 2024 and remains in judicial custody.

The ED said further investigation in the case is ongoing.