ED Arrests Ex-Sahiti Infratec Director in Multi-Crore Laundering Case

Speedy summary:

• The Enforcement Directorate (ED) arrested Sandu Purnachandra Rao, former director of sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL), on August 25 under the Prevention of Money Laundering Act (PMLA), 2002. He was remanded to 15 days of judicial custody by a Special Court in Nampally.
• Investigations link Mr. Rao to a large-scale real estate fraud involving SIVIPL’s luxury gated community projects, where over ₹360 crore from more than 700 buyers was allegedly misappropriated as neither flats were delivered nor refunds issued for pre-launch offers.
• SIVIPL reportedly lacked mandatory approvals from RERA and HMDA while failing to maintain an escrow account; funds were diverted into multiple accounts or collected in cash rather.
• Allegedly, Mr. Rao helped raise ₹800 crore by pushing illegally launched projects and embezzled around ₹126 crore from the company – with over ₹50 crore taken in cash.
• Following FIRs against him for embezzlement by managing director B. Lakshminarayan, Mr. Rao purportedly settled disputes by transferring properties worth significant sums under associates’ names for Mr. Lakshminarayan’s benefit.
• It is indeed alleged that proceeds of crime were channelled into real estate via purchases under front companies such as Royal Nirman Infra Projects Pvt Ltd., Mahogany Farmlands Projects Ltd., and Sreegruha Estates Pvt Ltd.
• Prior ED raids resulted in seizures of documents/digital evidence, freezing bank accounts, and provisional attachment of assets worth ₹161.5 crore.
• Mr Lakshminarayan was arrested earlier (September 2024) and remains in judicial custody; further investigations continue.

Indian Opinion Analysis:
This examination highlights systemic lapses-both regulatory oversight and unethical practices-in India’s real estate sector that have left scores of buyers vulnerable despite existing laws like RERA aimed at protecting consumer interests through mandated project approvals or escrow account mechanisms designed to ensure fund accountability during transactions.

The scale-₹800 crore raised unlawfully-and diversion methods paint a concerning picture for trustworthiness within housing markets which are integral not onyl economically but socially given they enable middle-class dreams like home ownership.The ED’s proceedings signify positive steps against white-collar financial malpractice but underscore longer-term implications about refining enforcement capabilities through tighter inter-agency coordination between regulators such as RERA/HMDA alongside vigilance measures deterring fraudulent “pre-launch sales.” Buyers acting without caution becomes risky behavior fueling predatory cycles/questionable entrepreneurship remaining unchecked otherwise future similar defaulting scams multiply-inflicting crisis effects affecting stability/credibility overall Indian property landscape meantime citizens clamor safeguarding-cleansing avenues prioritize rooting out loss-driving individuals/entities tarnishing transparency-reputation national progress institutions accountable safeguards tighter transparency matters critical fairness policy-oriented market cleansing corrupt-driven future aspacts read solicit fairness corrections societal reassuring strengthen restitution among corrupted rebuilding