The Sahiti Infra scam has sent shockwaves through India’s real estate sector, revealing a meticulously orchestrated fraud that swindled unsuspecting investors out of a staggering Rs1800 crore. This scheme, spearheaded by Sahiti Infra, lured potential buyers with enticing pre-launch offers, only to misuse the funds for personal gain.
In 2019, Sahiti Infra laid the groundwork for what would become one of the largest real estate frauds in recent history. Claiming ambitious plans to build 32 floors across 10 towers on 23 acres in Ameenpur, the company attracted 1,752 buyers who collectively investedRs504 crore. However, as construction failed to commence, investor suspicions began to mount.
By August 2022, frustrated victims filed complaints with the Hyderabad CCS Police against Sahiti Infra and its Managing Director, Budati Lakshminarayana. The subsequent investigation uncovered alarming truths about the extent of the fraud.
Sahiti Infra’s deceit extended beyond a single project, as the company orchestrated pre-launches for nine different ventures, collecting substantial sums from investors without any intention of delivering on its promises. Investigators found that the company’s directors had amassed Rs1164 crore across various projects, yet had secured little to no legal permissions for the promised constructions. Of the 23 acres in Ameenpur, only 10 acres were legitimately purchased; the rest were tied up in dubious, often unregistered, sales agreements.
The investigation revealed a Ponzi-style operation where funds collected from one project were used to finance others. As the scheme collapsed, over 50 cases were filed against Sahiti Infra across multiple districts, including Cyberabad, Hyderabad, and Medak.
The Enforcement Directorate (ED) soon intervened, launching an investigation under the Prevention of Money Laundering Act (PMLA). Recently, the ED issued orders to attach properties worth Rs161 crore belonging to Sahiti Infra and its key figures, including Managing Director B. Lakshminarayana and former director S. Purnachandra Rao.
The ED’s findings indicated that Sahiti Infra had defrauded around 655 buyers of Rs248 crore, promising flats and villas that were never built. The company raised over Rs250 crore for its ‘Sarvani Elite’ project, launched three years ago, yet no construction had begun.
Furthermore, the ED uncovered financial dealings with Omics International Limited. In 2020, Sahiti Infra paid Rs32 crore to develop nine acres of land in Ameenpur Village; however, Omics only transferred two acres, valued at Rs3 crore, leaving Rs29 crore unreturned.
The investigation also revealed the role of former director S. Purnachandra Rao, who misappropriated customer funds. Rao, who led the sales and marketing team, siphoned off Rs126 crore, including Rs50 crore in cash collected between 2018 and August 2020. After resigning, he acquired multiple properties in his and his family’s names, laundering the proceeds of the crime.
The Sahiti Infra scam serves as a stark reminder of the potential dangers in the real estate market. Investors must exercise extreme caution with pre-launch deals and thoroughly vet the companies behind such projects. For the victims, the journey to justice may be long, but with law enforcement agencies like the CCS and ED involved, there is hope that the fraudsters will be held accountable.
This Rs1800 crore scandal is a wake-up call for all stakeholders in the real estate industry, emphasizing the need for greater transparency, stricter regulations, and rigorous enforcement to prevent such large-scale fraud in the future.
