Hyderabad, Aug 26 The Enforcement Directorate (ED) on Tuesday said it has arrested Sandu Purnachandra Rao, a former Director of Sahiti Infratec Ventures India Pvt Ltd (SIVIPL), in a money laundering case.
Rao, who was also head of the sales and marketing team of the company, was produced before the Special Court (PMLA), which sent him to 15 days' judicial custody, the ED's Hyderabad zonal office said.
The Central agency initiated an investigation on the basis of an FIR registered by Telangana Police against the SIVIPL, B. Lakshminarayan and others for advertising a "Pre-Launch Offer" for the construction of a world-class residential gated community and collecting huge amounts from prospective buyers.
The company, however, failed to deliver the flats to the customers or to refund their money and, thus, cheated them of their hard-earned savings. Subsequently, various other FIRs were registered on the basis of complaints of investors/buyers of different projects undertaken by the SIVIPL and other group entities, the ED said.
More than 700 homebuyers, who were promised delivery of flats/villas, were defrauded of a cumulative amount of close to Rs 360 crore.
The ED investigation revealed that the SIVIPL did not have the necessary RERA/HMDA permission. Further, there was no escrow account for the project and the funds received from investors were deposited in various bank accounts and also collected in cash.
According to the ED, Purnachandra Rao assisted Lakshminarayana in the collection of funds of more than Rs 800 crore by the sale of inventory in illegally launched projects of the SIVIPL and cheated the public on the false pretext of the sale of inventory without having the necessary permissions/approvals. He illegally collected a substantial quantum of cash from buyers, which was not entered in the books of accounts of the SIVIPL, with a clear intent to conceal and siphon funds of the SIVIPL.
More than Rs 216.91 crore cash was collected from buyers on the pretext of the sale of inventory in the project Sarvani Elite. In addition to the above, Purnachandra Rao was also involved in the misappropriation of approximately Rs 126 crore from the SIVIPL, which comprised more than Rs 50 crore collected in cash.
When this fact was revealed to Lakshminarayana after a forensic audit, he registered three FIRs against Purnachandra Rao for misappropriation of funds. For the withdrawal of the said FIRs by Lakshminarayana, Purnachandra Rao entered into a settlement agreement and transferred 21 immovable properties in the names of employees of Sahiti Group and others for the beneficial ownership of Lakshminarayana.
Purnachandra Rao purchased immovable properties in the names of his family members and entities (Royal Nirman Infra Projects Pvt Ltd, M/s Mahogany Farmlands Projects Ltd and M/s Sreegruha Estates Pvt Ltd) from the proceeds of crime acquired by him.
Earlier, the ED had conducted searches in connection with the case at various premises, seized incriminating material, digital devices and had frozen several bank accounts.
Further, movable and immovable properties worth Rs 161.50 crore were provisionally attached during the course of the PMLA investigation. Lakshminaryan, the MD of the SIVIPL, was arrested by the ED on September 29, 2024 and is presently in judicial custody.
Further investigation is in progress, the ED said.
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