Sahiti Infratec MD arrested by ED in real estate pre-launch offer scam

Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has arrested Boodati Lakshminarayana, the managing director of Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL) on September 29 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

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 from investors/buyers of different projects undertaken by SIVIPL and other group entities. More than 700 homebuyers, who were promised delivery of flats/villas, were defrauded of a cumulative amount of close to Rs 360 crores.

He was produced before the Special Court (PMLA), Nampally, on Monday and was granted judicial custody till October 14.

Pre-launch offer scam

The ED initiated an investigation based on an FIR registered by Telangana Police under IPC, 1860 against SIVIPL, B Lakshminarayana 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.

ED investigation revealed that SIVIPL did not have the necessary RERA/HMDA permissions.

MD transferred investments to personal accounts

Further, there were no Escrow accounts for the project and the funds received from investors were deposited in various bank accounts and also collected in cash. Lakshminarayana diverted part of the said funds to his personal bank accounts and into the bank accounts of his family members. Substantial amounts of funds were also withdrawn in the form of cash.

The ED investigation further revealed that funds of homebuyers were embezzled by Lakshminarayana in connivance with Sandu Purnachandra Rao, former director of SIVIPL and head of the Sales and Marketing team; and that immovable properties were acquired by him out of the Proceeds of Crime in the names of his benamis.

Lakshminarayana failed to appear in court

During the ED investigation, Lakshminarayana remained evasive, submitted a fake medical certificate and did not appear in response to numerous summonses issued to him.

He was absconding and untraceable for a long period and his whereabouts could not be ascertained. Acting on a tip-off, Lakshminarayana was finally apprehended on September 29 and placed under arrest.

Earlier, ED had conducted searches in connection with the case at various premises, seized incriminating material and digital devices and had frozen several bank accounts. Further, movable and immovable properties worth Rs 161.50 crores were provisionally attached during the PMLA investigation.

Further investigation is under progress.