HYDERABAD: The Directorate of Enforcement (ED) on Tuesday arrested Sandu Purnachandra Rao, former director of Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL), in connection with a Rs 360 crore real estate scam.
The probe was initiated on the basis of an FIR registered by Telangana police against SIVIPL, its managing director B Lakshminarayana and others for luring buyers through a ‘pre-launch offer’ for a world-class residential gated community.
The company collected huge sums from prospective buyers but failed to deliver the promised flats or refund the money. Over 700 homebuyers were defrauded of nearly Rs 360 crore.
ED investigation revealed that SIVIPL had neither RERA nor HMDA approvals for its projects and and failed to maintain an escrow account. Instead, investor funds were routed through multiple bank accounts and collected in cash.
Purnachandra, along with Lakshminarayana, allegedly mobilised more than Rs 800 crore through illegally launched projects. Of this, over Rs 216.91 crore was collected in cash in the name of Sarvani Elite project and not recorded in the company’s accounts.
Purnachandra was also found to have misappropriated about Rs 126 crore, including more than Rs 50 crore in cash. After a forensic audit exposed the diversion, Lakshminarayana lodged three FIRs against him.
Purnachandra later entered into a settlement, transferring 21 immovable properties in the names of Sahiti Group employees and others for Lakshminarayana’s beneficial ownership. He also purchased properties in the names of his family members and associated entities.
