ED arrests Sahiti Group’s former director for pre-launch offer scam

Hyderabad: The Directorate of Enforcement (ED) has arrested Sandu Purnachandra Rao, former Director of Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL) and head of Sales & Marketing team.

The ED arrested Rao under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court (PMLA), Nampally and the Court has remanded him to 15 days judicial custody.

The central probing agency initiated investigation on the basis of an FIR registered by Telangana Police against M/s SIVIPL, B. Lakshminarayan & 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 SIVIPL & 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 crore.

ED investigation revealed that 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.

Purnachandra Rao assisted B. Lakshminarayana in collection of funds of more than Rs. 800 crore by sale of inventory in illegally launched projects of SIVIPL and cheated public on the false pretext of sale of inventory without having necessary permissions and approvals. He illegally collected substantial quantum of cash from buyers which was not entered in books of accounts of SIVIPL with a clear intent to conceal & misuse of funds. More than Rs. 216.91 crore cash was collected from buyers on the pretext of sale of inventory in project Sarvani Elite.

Purnachandra Rao was also involved in misappropriation of approx. Rs. 126 crore from SIVIPL, which comprised more than Rs. 50 crore collected in cash. Purnachandra Rao entered into a settlement agreement with B. Lakshminarayana and transferred 21 immovable properties in the names of employees of Sahiti Group & others for the beneficial ownership of B. Lakshminarayana.

Sandu Purnachandra Rao purchased immovable properties in the names of his family members & entities [Royal Nirman Infra Projects Pvt Ltd, Mahogany Farmlands Projects Ltd and Sreegruha Estates Pvt Ltd] from proceeds of crime acquired by him.