The Enforcement Directorate (ED) has summoned Telugu superstar Mahesh Babu to appear before it on April 28 in connection with an ongoing investigation into alleged financial misconduct and laundering involving two real estate firms based in Hyderabad. The case revolves around serious accusations of cheating prospective land buyers, and the actor's name has emerged due to his endorsement of the companies under scrutiny.
According to information gathered from internal sources at the ED, Mahesh Babu is reported to have promoted projects undertaken by Sai Surya Developers and the Surana Group, both of which are now at the center of a high-profile money laundering probe. Investigators believe that the actor was paid a total of Rs 5.9 crore for his endorsement activities on behalf of Sai Surya Developers.
Out of this amount, Rs 3.4 crore was transferred via cheque, while the remaining Rs 2.5 crore was allegedly paid in cash, raising red flags among officials. Authorities suspect that the cash component may be part of a broader illegal money laundering operation linked to the misappropriation of funds from unsuspecting investors.
The origins of the probe trace back to First Information Reports (FIRs) filed by the Telangana police against Narendra Surana, who is the director of Bhagyanagar Properties Ltd., and K. Sathish Chandra Gupta, who heads Sai Surya Developers, along with other unnamed individuals. These parties are believed to have defrauded numerous clients by collecting hefty advance payments for land in unauthorized or unapproved layouts. Additionally, some plots were reportedly sold multiple times to different customers, accompanied by fraudulent promises of legal registration, all of which point to a coordinated scam.
ED officials believe that Mahesh Babu’s celebrity endorsement significantly influenced public trust, encouraging people to invest in the projects. While there is no direct evidence indicating that the actor was part of the actual fraudulent operations, the investigation is currently focused on tracing the origin and legitimacy of the payments he received.
The Hyderabad Zonal Office of the Directorate of Enforcement (ED) carried out search operations at four different locations in Hyderabad and Secunderabad on April 16, 2025. These actions were undertaken under the legal framework of the Prevention of Money Laundering Act (PMLA), 2002, as part of a deeper probe into financial irregularities involving Sai Surya Developers and other associated entities.
The case stems from multiple First Information Reports (FIRs) registered by the Telangana Police. The complaints were filed against Narendra Surana, the managing director of Bhagyanagar Properties Ltd., and K. Sathish Chandra Gupta, the owner of Sai Surya Developers, along with several other individuals. These persons are accused of violating several sections of the Indian Penal Code (IPC), 1860, by misleading innocent investors and deceiving them into paying large sums of money as advances for land purchases.
The ED's investigation has unearthed a deliberate pattern of deceit involving the development and sale of unauthorized real estate plots. The accused allegedly marketed and sold the same plot to multiple clients, accepted money without entering into legal agreements, and made false promises regarding the registration of land parcels. These actions led to substantial financial damage for numerous victims who trusted the fraudulent assurances.
According to the ED, the money collected through such scams was classified as proceeds of crime and was allegedly channeled into personal and connected business accounts for illicit personal benefit.
During the recent raids, the agency reportedly discovered and confiscated a trove of incriminating documents, which provided detailed evidence of the amounts collected using fraudulent methods. Additionally, the searches uncovered undocumented cash transactions amounting to roughly Rs 100 crore. Specifically, a sum of Rs 74.5 lakh in unaccounted cash was seized from the offices and premises linked to Narendra Surana and the Surana Group of companies.
The ED continues to examine the trail of these illicit funds and is expected to take further legal action against all those found complicit in the money laundering operations.
As the probe deepens, Mahesh Babu’s scheduled appearance before the agency will be a key moment in clarifying the extent of his role and knowledge regarding the financial irregularities linked to the real estate companies he endorsed.
According to information gathered from internal sources at the ED, Mahesh Babu is reported to have promoted projects undertaken by Sai Surya Developers and the Surana Group, both of which are now at the center of a high-profile money laundering probe. Investigators believe that the actor was paid a total of Rs 5.9 crore for his endorsement activities on behalf of Sai Surya Developers.
Out of this amount, Rs 3.4 crore was transferred via cheque, while the remaining Rs 2.5 crore was allegedly paid in cash, raising red flags among officials. Authorities suspect that the cash component may be part of a broader illegal money laundering operation linked to the misappropriation of funds from unsuspecting investors.
The origins of the probe trace back to First Information Reports (FIRs) filed by the Telangana police against Narendra Surana, who is the director of Bhagyanagar Properties Ltd., and K. Sathish Chandra Gupta, who heads Sai Surya Developers, along with other unnamed individuals. These parties are believed to have defrauded numerous clients by collecting hefty advance payments for land in unauthorized or unapproved layouts. Additionally, some plots were reportedly sold multiple times to different customers, accompanied by fraudulent promises of legal registration, all of which point to a coordinated scam.
ED officials believe that Mahesh Babu’s celebrity endorsement significantly influenced public trust, encouraging people to invest in the projects. While there is no direct evidence indicating that the actor was part of the actual fraudulent operations, the investigation is currently focused on tracing the origin and legitimacy of the payments he received.
The Hyderabad Zonal Office of the Directorate of Enforcement (ED) carried out search operations at four different locations in Hyderabad and Secunderabad on April 16, 2025. These actions were undertaken under the legal framework of the Prevention of Money Laundering Act (PMLA), 2002, as part of a deeper probe into financial irregularities involving Sai Surya Developers and other associated entities.
The case stems from multiple First Information Reports (FIRs) registered by the Telangana Police. The complaints were filed against Narendra Surana, the managing director of Bhagyanagar Properties Ltd., and K. Sathish Chandra Gupta, the owner of Sai Surya Developers, along with several other individuals. These persons are accused of violating several sections of the Indian Penal Code (IPC), 1860, by misleading innocent investors and deceiving them into paying large sums of money as advances for land purchases.
The ED's investigation has unearthed a deliberate pattern of deceit involving the development and sale of unauthorized real estate plots. The accused allegedly marketed and sold the same plot to multiple clients, accepted money without entering into legal agreements, and made false promises regarding the registration of land parcels. These actions led to substantial financial damage for numerous victims who trusted the fraudulent assurances.
According to the ED, the money collected through such scams was classified as proceeds of crime and was allegedly channeled into personal and connected business accounts for illicit personal benefit.
During the recent raids, the agency reportedly discovered and confiscated a trove of incriminating documents, which provided detailed evidence of the amounts collected using fraudulent methods. Additionally, the searches uncovered undocumented cash transactions amounting to roughly Rs 100 crore. Specifically, a sum of Rs 74.5 lakh in unaccounted cash was seized from the offices and premises linked to Narendra Surana and the Surana Group of companies.
The ED continues to examine the trail of these illicit funds and is expected to take further legal action against all those found complicit in the money laundering operations.
As the probe deepens, Mahesh Babu’s scheduled appearance before the agency will be a key moment in clarifying the extent of his role and knowledge regarding the financial irregularities linked to the real estate companies he endorsed.
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