ED attaches Bharati Builders’ assets worth ₹17.97 crore in fraud case

The Directorate of Enforcement has provisionally attached movable and immovable properties worth ₹17.97 crore in connection with an alleged fraud involving M/s Bharati Builders, its partners and their family members.

The action was taken under the Prevention of Money Laundering Act following an investigation into a case of cheating of homebuyers and investors. The probe stems from an FIR registered by the Economic Offences Wing police station in Cyberabad against Mulpury Sivarama Krishna, Dupati Naga Raju, Doddakula Narsimha Rao, also known as Ponnari, and others under charges of criminal breach of trust and cheating, along with provisions of the Telangana Protection of Depositors of Financial Establishments Act.

According to the agency, the investigation revealed that Mulpury Sivarama Krishna, managing partner of Bharati Builders, along with Dupati Naga Raju, allegedly floated a pre launch scheme for a project named Bharati Lake View Towers. More than 450 homebuyers were induced to invest substantial amounts on the promise of sale of flats.

Officials said the accused executed agreements with investors while concealing that statutory permissions for the project had not been obtained and that the land had already been pledged as collateral for loans. Existing liabilities of the firm and its promoters were also allegedly not disclosed to buyers.

The agency alleged that the accused collected around ₹75 crore from homebuyers, including about ₹17 crore in cash, and diverted the funds instead of completing the project. The money was allegedly used for repayment of liabilities, payment of interest, purchase of properties and other unrelated expenses.

Investigators also found that parcels of land meant for the project were sold to unrelated persons, and this was not disclosed to investors. Despite this, advances continued to be collected from homebuyers.

Further investigation is underway.