Jagapathi Babu questioned by ED in ₹360cr fraud case
What's the story
Veteran actor Jagapathi Babu was questioned by the Enforcement Directorate (ED) for four hours on Thursday in connection with the Sahiti Infra fraud case. His questioning was reportedly linked to his involvement in the company's advertisements, and he has been treated as a witness in this ongoing investigation. The probe focuses on Sahiti Infratec Ventures India Pvt Ltd (SIVIPL), which allegedly defrauded more than 700 buyers of nearly ₹360cr through pre-launch offers of luxury residential projects.
Investigation details
ED is probing the legitimacy of payments made to Babu
The ED has sought details about the remuneration and payment methods received by Babu for appearing in promotional campaigns for Sahiti Infra. The agency is investigating whether these payments were legitimate as part of a wider probe into alleged financial irregularities at SIVIPL. The company allegedly diverted funds into multiple accounts and shell firms, bypassing regulatory requirements, while failing to deliver promised flats or refunds.
Arrests made
Arrests and assets seized in ongoing investigation
Earlier, Sandu Purnachandra Rao, the former director of SIVIPL and head of its sales and marketing team, was arrested on August 25 under the Prevention of Money Laundering Act. The company's managing director B Lakshminarayan was also taken into custody in September 2024. The ED has seized documents, frozen bank accounts, and provisionally attached assets worth ₹161.5cr in this case. Investigations are ongoing.