Over 450 homebuyers duped in Rs 75 crore Bharati Builders scam, Hyderabad ED attaches assets worth Rs 17.97 crore

Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached movable and immovable properties worth Rs 17.97 crore in connection with a major real estate fraud involving Bharati Builders, its partners, family members and associates.

The action was taken under the Prevention of Money Laundering Act (PMLA), 2002.

Rs 75 crore ‘proceeds of crime’ identified

Investigators found that the accused generated around Rs 75 crore as proceeds of crime through advances collected from homebuyers.

Of this, about Rs 17 crore was allegedly collected in cash.

Probe triggered by Cyberabad EOW FIR

The ED launched its investigation based on FIR No. 10/2024 dated May 4, 2024, registered by the Economic Offences Wing (EOW), Cyberabad.

The case names Mulpury Sivarama Krishna, Dupati Naga Raju, Doddakula Narsimha Rao (alias Ponnari) and others under Sections 406 and 420 of the IPC, along with provisions of the Telangana Protection of Depositors of Financial Establishments Act, 1999.

Pre-launch scheme used to lure buyers

According to the ED, Mulpury Sivarama Krishna, managing partner of Bharati Builders, along with associates, floated a pre-launch scheme for a project titled ‘Bharati Lake View Towers.’ More than 450 homebuyers were allegedly induced to invest substantial sums based on promises of flat allotments.

However, the promoters reportedly concealed crucial facts, including the absence of statutory permissions for the project and that the land had already been pledged as collateral for loans. Existing liabilities of the firm were also allegedly hidden from investors.

Funds diverted, project not completed

Instead of completing the project, the collected funds were allegedly diverted for purposes unrelated to construction. These include repayment of prior liabilities, payment of interest on advances, purchase of immovable properties, and commissions for converting bank funds into cash.

Project land was sold without buyers’ knowledge

The ED further revealed that land parcels meant for the project were sold to third parties without informing homebuyers. Despite this, the main accused continued to collect money from new investors, allegedly deepening the fraud.

The ED stated that further investigation in the case is ongoing to trace additional assets and identify other beneficiaries involved in the alleged money laundering network.