In a dramatic turn of events, renowned actor Mahesh Babu finds himself in the midst of a legal storm as the Ranga Reddy District Consumer Forum has issued notices against him. This development follows a probe by the Enforcement Directorate (ED) in connection with an ongoing money laundering case involving unauthorized real estate projects. The actor’s involvement stems from his association with the ‘Green Meadows’ project by Sai Surya Developers, where he served as the brand ambassador.
Details of the Real Estate Fraud Case
The controversy erupted when a Hyderabad-based doctor lodged a complaint, asserting that she and several others were duped by two real estate firms—Sai Surya Developers and Surana Group. The crux of the issue lies in the advertising of unauthorized real estate projects. The complainants purchased plots worth Rs 34.80 lakh each under the false impression of a legitimate layout in Balapur village.
| Quick Facts | Details |
|---|---|
| Actor Involved | Mahesh Babu |
| Real Estate Firms | Sai Surya Developers, Surana Group |
| Project Name | Green Meadows |
| Fraud Amount | Rs 34.80 lakh per plot |
| Legal Action | Ranga Reddy District Consumer Forum notice |
Role of Mahesh Babu as Brand Ambassador
Mahesh Babu, who served as the brand ambassador for the ‘Green Meadows’ project, reportedly received a substantial sum in compensation—Rs 5.9 crore split between cheque and cash. His role as a public figure lent considerable weight to the project, misleading buyers into believing in its authenticity.
“As a brand ambassador, Mahesh Babu’s association with the project added a layer of credibility, which was unfortunately exploited,” commented an official familiar with the case.
Enforcement Directorate’s Probe
The ED’s investigation is a significant aspect of the case, scrutinizing the financial dealings under the Prevention of Money Laundering Act, 2002. The probe uncovered that both firms engaged in the repeated sale of the same plots to different buyers after collecting advance payments.
On April 16, enforcement officials conducted searches at multiple locations, including Secunderabad, Jubilee Hills, and Bowenpally, uncovering financial transactions worth Rs 100 crore deemed illegal.
Impact and Repercussions
The case has sent shockwaves through the real estate market, raising questions about the accountability of brand ambassadors and the ethical responsibilities of public figures endorsing projects. The legal notice against Mahesh Babu is a testament to the growing scrutiny in celebrity endorsements.
FAQ
Q1: What is the role of Mahesh Babu in the fraud case?
A: Mahesh Babu was the brand ambassador for the ‘Green Meadows’ project, which misled buyers about the legitimacy of the real estate development.
Q2: What actions have been taken by the authorities?
A: The Ranga Reddy District Consumer Forum has issued legal notices, and the Enforcement Directorate is investigating under the Prevention of Money Laundering Act, 2002.
Q3: How much money was involved in this fraud?
A: Complainants were misled into buying plots worth Rs 34.80 lakh each. The firms involved had financial transactions flagged amounting to Rs 100 crore.
Q4: Who are the real estate firms involved?
A: The firms named in the fraud are Sai Surya Developers and Surana Group.
Q5: What are the legal implications for Mahesh Babu?
A: As the third respondent, Mahesh Babu faces legal scrutiny for his role in endorsing the project that misled buyers.
In conclusion, the involvement of Mahesh Babu in this real estate fraud case highlights the potential repercussions of celebrity endorsements in unauthorized projects. As the legal proceedings unfold, this case serves as a cautionary tale for both buyers and brand ambassadors in the real estate sector.