ED books Sahiti MD for fund diversion

HYDERABAD: The Hyderabad zonal unit of the Directorate of Enforcement (ED) has registered a case against Sahiti Constructions in connection with the diversion of money from the company to other accounts, even while the company is facing allegations of cheating 1,500 customers, who booked flats under the pre-launch scheme.

The company collected around Rs 400 crore from customers but failed to deliver the flats in time. The buyers lodged a complaint against company managing director Lakshminarayana in the Central Crime Station, Hyderabad, in August. On the basis of FIR, the ED registered a case against Sahiti Constructions and its MD.

Suspicious transactions from the company to other companies as well as individuals were recorded. The ED suspects that the money collected from customers was diverted for other purposes instead of claimed business.

The company earlier announced that money will be given back to customers, but the management failed to honour it and the cheques given by it for the refund amount bounced. Sources said the ED is likely to proceed with further investigation in the coming days and want to interrogate several key people in the episode.