Sahiti Group fraud: ED seizes cash, gold worth Rs 6.15 Crore from CSK Realtors, Singh Mansions

Hyderabad: The sleuths of the Enforcement Directorate (ED) have seized cash and gold worth Rs 6.15 crore from Hyderabad-based realtors CSK Realtors Ltd., Singh Mansions Pvt. Ltd., Suresh Kr. Agarwal and Rakshit Agarwal. These raids were in regard to the alleged Sahiti Group fraud to the tune of Rs 842 crore.

ED conducted searches on December 19 and found jewellery and bullion valued at Rs 5.42 crore and unaccounted cash amounting to Rs 72.75 lakh. The total seizure amounts were Rs 6.15 crore (approx).

The Telangana Police has booked SIVIPL, MD B Lakshminarayan and others on the basis of complaints of investors/buyers of different projects undertaken by SIVIPL and other group entities. SIVIPL, B Lakshminarayana and others collected huge amounts from prospective buyers for the construction of residential premises but failed to deliver flats or to refund their money and thus cheated them of their hard-earned savings.

The ED investigation revealed that SIVIPL did not have the necessary statutory permissions. Further, there was no ESCROW account for the project and the funds received from investors were deposited in various bank accounts and were also collected in cash.

Investigation revealed that SIVIPL generated Proceeds of Crime (POC) to the tune of Rs 842.15 crore by taking advance from homebuyers on false pretext of sale of inventory in projects launched by Sahiti Group. Out of this, a sum of Rs 216.91 crore was collected from homebuyers in cash, which never made it to the books of accounts and was concealed by the promoters/directors of SIVIPL for their personal use. Proceeds of Crime were siphoned off by diverting the funds of SIVIPL to related as well as unrelated entities/persons by executing bogus banking transactions without any genuine business.

During the investigation, it was found that the companies of Suresh Kr. Agarwal and Rakshit Agarwal entered into high-value transactions valued at more than Rs 20 crore with SIVIPL and engaged in the sale and purchase of properties. Suresh Kr. Agarwal and Rakshit remained evasive/did not appear in response to summons and did not submit requisite documents thereby not cooperating in the ongoing investigation.

ED had earlier attached properties worth Rs 161.5 crores in the case. Subsequently, B Lakshminarayana, Managing Director of Sahiti Infratec Ventures India Pvt. Ltd. was arrested on September 29. A Prosecution Complaint (PC) was filed before the MSJ Court, Hyderabad against SIVIPL and B Lakshminarayana and the court took cognizance of the PC on December 4. Lakshminarayana is still in judicial custody.