ED summons Telugu actor Mahesh Babu in connection with money laundering probe (2025)

While there is no indication so far that Mahesh Babu was aware of the fraudulent operations, his endorsement is believed to have influenced public trust and attracted several investors to a controversial building project.

Synopsis: The Enforcement Directorate (ED) has summoned Mahesh Babu to appear before it in connection with a high-profile money laundering probe involving two Hyderabad-based real estate companies. The actor’s association with Sai Surya Developers as the brand ambassador for their Green Meadows venture has come under the ED’s scanner.

The Enforcement Directorate (ED) has summoned popular Telugu actor Mahesh Babu to appear before investigators on 28 April in connection with a high-profile money laundering probe involving two Hyderabad-based real estate companies — Sai Surya Developers and the Surana Group.

The ED is investigating allegations of massive financial fraud and cheating involving these firms, both of which are accused of duping homebuyers by selling plots in unauthorised layouts, reselling the same plots multiple times, and making false promises about registrations.

According to The Times of India, Mahesh Babu allegedly received ₹5.9 crore for endorsing projects linked to Sai Surya Developers, of which ₹3.4 crore was paid via cheque and ₹2.5 crore in cash. Authorities suspect that the cash component may be part of laundered funds collected through fraudulent means.

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Dubious endorsements under scrutiny

The actor’s association with Sai Surya Developers, particularly as the brand ambassador for their Green Meadows venture in Shadnagar, has come under the ED’s scanner.

While there is no indication so far that Mahesh Babu was aware of the fraudulent operations, his endorsement is believed to have influenced public trust and attracted several investors to the controversial project.

Sai Surya Developers, led by proprietor K Sathish Chandra Gupta, has a history of criminal complaints, including the Green Meadows fraud. The venture, pitched as a lucrative investment, drew in multiple buyers who later discovered severe discrepancies and alleged deception.

Investors cry foul

One of the complainants, 32-year-old software engineer Nakka Vishnu Vardhan, filed a police case at Madhura Nagar Police Station, accusing Sathish Chandra Gupta of cheating investors out of over ₹3.2 crore.

Vardhan and others — including doctors, businessmen, and professionals — invested in the Green Meadows project in 2021, expecting quick registration of plots after necessary Hyderabad Metropolitan Development Authority (HMDA) approvals.

However, as time passed with no updates, the investors conducted their own inquiries and discovered that their mortgage plots had been sold or registered in the names of third-party financiers — SRV & TNR Infra, Rajaram, and VASGI Venkatesh — without their knowledge. This not only revealed a breach of contract but also a broader pattern of deceit.

The complaint highlights how the actor’s public image played a role in building trust in the project, which has now unraveled amid allegations of criminal misappropriation and fake documentation.

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Raids reveal widespread irregularities

On 16 April, ED teams raided the premises of both the Surana Group and Sai Surya Developers across Hyderabad and Secunderabad. According to officials, the searches led to the seizure of incriminating documents and records of unaccounted cash transactions worth around ₹100 crore. Additionally, ₹74.50 lakh in cash was recovered from the Surana Group premises.

ED stated that the real estate firms ran fraudulent schemes under the guise of legitimate ventures, collecting advance payments without valid agreements, misrepresenting approvals, and repeatedly selling the same plots. The proceeds of these crimes were allegedly laundered through a network of shell entities and personal accounts, with a portion suspected to have been used to pay celebrities for promotional campaigns.

The ED’s probe is based on multiple FIRs filed by Telangana Police against Narendra Surana of Bhagyanagar Properties, Sathish Chandra Gupta of Sai Surya Developers, and others under Indian Penal Code (IPC) Sections 406 and 420, which pertain to criminal breach of trust and cheating.

Officials said the agency is now preparing to attach properties acquired through the proceeds of crime, including those linked to promotional deals. The ED maintains that funds laundered from these fraudulent schemes were intentionally diverted for personal gain, and further investigation is ongoing.

While Mahesh Babu’s involvement appears limited to promotional activities, the ED is keen to understand the nature of his financial transactions with the accused firms — especially the ₹2.5 crore cash component — and whether he had any knowledge of the irregularities surrounding the projects he endorsed.

(Edited by Muhammed Fazil with inputs from Sumit Jha.)