Hyderabad: Telugu star Jagapathi Babu was questioned by the Enforcement Directorate (ED) on Thursday, September 25, for nearly four hours in connection with the alleged financial irregularities of scam-hit real estate firm Sahiti Infra.
Officials are probing his suspected financial dealings with Sandu Purnachandra Rao, former director of Sahiti Infratec Ventures India Pvt. Ltd. (SIVIPL).
According to reports, the ED has traced money transactions between the actor and Purnachandra Rao dating back to 2018, when Sahiti Constructions developed luxury villas in Vijayawada.
Investigators also placed on record bank transfers made from Jagapathi Babu’s accounts to Sahiti Infra and Rao.
Babu asked to submit bank statements
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During the questioning, the actor was reportedly asked to submit his bank statements for the last 15 years for verification. Officials also examined video footage of Sahiti Vijayawada project launches attended by Jagapathi Babu, along with his past media statements endorsing the firm’s business activities.
Investigators pointed out that Sahiti projects lacked an escrow account system, while funds collected from investors were routed across multiple accounts and partly accepted in cash.
The ED noted that Purnachandra Rao played a key role in helping Sahiti’s managing director B Lakshminarayana, mobilise over Rs 800 crore from customers by selling pre-launch inventory for projects that were allegedly floated without mandatory approvals.
Telangana police FIR
The probe widened after Telangana police registered an FIR against SIVIPL, Lakshminarayana, and others for advertising “Pre-Launch Offers” and collecting large sums without delivering properties. More than 700 homebuyers are said to have been duped, with cumulative losses estimated at around ₹360 crore.
The ED had earlier arrested Purnachandra Rao under the Prevention of Money Laundering Act (PMLA) for his involvement in diverting funds, and questioning of Jagapathi Babu forms part of the ongoing investigation.
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