The Enforcement Directorate (ED) has intensified its legal action in a major real estate fraud case in Hyderabad, filing a fresh set of charges against the primary accused. The agency's Hyderabad unit submitted a supplementary prosecution complaint under the Prevention of Money Laundering Act (PMLA) before the MSJ Court in Nampally, which officially took note of the document on Monday.
Key Accused and Core Allegations
The complaint targets B Lakshminarayana, the former director, and S Purnachandra Rao, the marketing head of Sahiti Infratec Ventures India Pvt Ltd (SIVIPL). The ED initiated its money-laundering investigation based on an initial FIR registered by the Telangana police. The police alleged that SIVIPL and its promoters lured investors with a ‘pre-launch offer’ for a gated residential community. They collected substantial sums from hopeful homebuyers but neither delivered the promised flats nor returned the money in 2022.
As the scandal unfolded, multiple additional FIRs were filed across the state following complaints from investors and buyers linked to various projects under SIVIPL and its associated group companies. The ED estimates that over 700 homebuyers were defrauded of approximately ₹360 crore.
Modus Operandi and Financial Diversion
Investigators revealed a pattern of regulatory bypass and financial misconduct. According to the ED, SIVIPL did not secure the mandatory permissions from the Real Estate Regulatory Authority (RERA) and the Hyderabad Metropolitan Development Authority (HMDA). Crucially, the company also failed to maintain a dedicated escrow account for the project, which is a legal requirement meant to protect buyer funds.
The agency alleges that investor money was routed through a web of bank accounts and a significant portion was collected in cash. In total, the accused are said to have raised over ₹800 crore by selling inventory in projects launched without necessary approvals. A staggering ₹216.9 crore in cash was collected specifically for the Sarvani Elite project, much of it allegedly unrecorded in the company's official books.
The ED's statement outlines how the proceeds of the crime were siphoned off. Funds were allegedly diverted to both related and unrelated entities through bogus banking transactions. Large amounts of cash were also withdrawn directly from company accounts. In a serious allegation, the ED claims that Lakshminarayana and his family members diverted funds to overseas bank accounts.
Internal Fraud and Asset Attachment
The case took a dramatic turn with internal strife between the accused. The ED claims that Rao was involved in misappropriating about ₹126 crore, which included over ₹50 crore in cash. When Lakshminarayana discovered this during a forensic audit, he filed police complaints against Rao, leading to three separate FIRs.
Subsequently, Rao allegedly approached Lakshminarayana for a settlement. As part of this arrangement, 21 immovable properties were transferred into the names of employees and others, purportedly for the beneficial ownership of Lakshminarayana.
The ED has taken stringent action, having conducted searches, seized digital devices and documents, and frozen relevant bank accounts. In a significant move, the agency has provisionally attached assets worth ₹169.15 crore. Both accused are currently in judicial custody; Lakshminarayana was arrested on September 29, 2024, and Rao was taken into custody on August 25, 2025.
