ED Conducts Major Search Operation in Hyderabad, Uncovers Rs. 6.15 Crore in Seized Assets Linked to Real Estate Fraud
(Judicial Quest News Network)
The Directorate of Enforcement (ED), Hyderabad Zonal Office, has carried out a significant search operation on December 19, 2024, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The searches were conducted at two premises in Hyderabad, directly linked to M/s CSK Realtors Ltd., M/s Singh Mansions Pvt. Ltd., and key individuals Suresh Kr. Agarwal and Rakshit Agarwal.
These operations resulted in the recovery and seizure of a substantial amount of assets, including jewelry and bullion valued at approximately Rs. 5.42 Crore, along with unaccounted cash totaling Rs. 72.75 Lakh. The total value of the seized items is estimated at around Rs. 6.15 Crore. Additionally, incriminating documents were recovered, revealing suspicious and unaccounted cash transactions, as well as property-related documents that further implicate the accused.
The ED initiated its investigation after multiple FIRs were filed by Telangana Police under the Indian Penal Code (IPC), 1860, against M/s SIVIPL, B. Lakshminarayana, and others. These complaints stemmed from aggrieved investors and buyers who had invested significant amounts in various projects undertaken by M/s SIVIPL and its affiliated entities. The investors claimed that they were cheated when M/s SIVIPL, along with its associates, collected large sums for residential construction but failed to deliver promised flats or refund their money, effectively swindling the victims of their hard-earned savings.
The ED’s probe revealed that M/s SIVIPL lacked the necessary statutory approvals for their projects. In addition, the company failed to open an ESCROW account to manage the investor funds.
Instead, the money collected from investors was channelled into various bank accounts and was also collected in cash. The investigation uncovered that M/s SIVIPL had generated proceeds of crime (POC) amounting to a staggering Rs. 842.15 Crore by misleading homebuyers into paying advances under the false pretext of selling inventory in Sahiti Group projects. Of this total, a massive Rs. 216.91 Crore was collected in cash—money that was not recorded in the company’s financial records and was concealed by the promoters for personal use.
Further scrutiny revealed that companies owned by Suresh Kr. Agarwal and Rakshit Agarwal were involved in high-value transactions exceeding Rs. 20 Crore with M/s SIVIPL.
These companies engaged in property sales and purchases, but when summoned for questioning, both Suresh Kr. Agarwal and Rakshit Agarwal remained evasive and failed to cooperate with the investigation by not submitting required documents.
The ED had previously attached assets worth Rs. 161.5 Crore linked to the case. On September 29, 2024, B. Lakshminarayana, the Managing Director of M/s Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL), was arrested in connection with the ongoing investigation. A Prosecution Complaint (PC) was filed before the Hon’ble MSJ Court, Hyderabad, against M/s SIVIPL and B. Lakshminarayana. On December 4, 2024, the Hon’ble Court took cognizance of the PC, and B. Lakshminarayana remains in judicial custody.
The investigation into this extensive fraud continues, with authorities actively pursuing all leads to ensure justice is served for the victims and to uncover the full extent of the financial misconduct.
