Mahesh Babu Receives Court Notice Over Alleged Rs 34 Lakh Real Estate Scam

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Telugu star Mahesh Babu has received a court notice over his endorsement of Sai Surya Developers, accused of cheating a doctor of Rs 34.8 lakh. The actor’s brand promotion is under legal scrutiny in the ongoing fraud case.

New Delhi: On July 7, Popular Telugu actor Mahesh Babu has landed in legal trouble due to his connection with a real estate company based in Hyderabad.

The Ranga Reddy District Consumer Commission recently sent him a notice in a cheating case related to Sai Surya Developers, a firm for which Mahesh Babu was the brand ambassador.

A woman doctor from Hyderabad has filed a complaint, stating that she lost Rs 34.8 lakh after investing in a real estate layout project that never existed. She claimed that she trusted the scheme only because Mahesh Babu promoted it.

According to her, his public endorsement made the entire offer appear genuine and trustworthy. She said that the company used Mahesh Babu’s image and advertisements to convince investors that the project was legitimate.

The Consumer Commission has now issued notices to Mahesh Babu, Sai Surya Developers, and its owner Kancharla Satish Chandra Gupta. They have all been asked to attend the hearing.

The case has been adjourned and the next date of hearing is scheduled for the seventh of next month.

While Mahesh Babu has not been officially named as an accused in this case so far, his involvement with the company is now being looked at closely.

As of now, the actor has not given any public statement or clarification about the controversy. The court’s focus is on how his image was used to gain public trust, which reportedly led to financial losses for the complainant.

This is not the first time Mahesh Babu has come under the radar for his connection with Sai Surya Developers. Earlier in April 2025, the Enforcement Directorate (ED) had summoned the actor for questioning in a money laundering case.

This case involved both Sai Surya Developers and the Surana Group. ED officials stated that Mahesh Babu had done promotional work for various real estate projects under these companies.

As per reports, Mahesh Babu was paid a total of Rs 5.9 crore for his promotional work. Out of this, Rs 3.4 crore was paid through cheque, and the remaining Rs 2.5 crore was allegedly paid in cash.

It is the cash payment that has attracted the ED’s attention, as the agency suspects that it may be connected to a larger money laundering racket.

This suspicion led to the ED issuing summons to Mahesh Babu, asking him to appear before the agency on April 28.

Investigators are currently looking into whether the money received in cash was properly accounted for and if it was part of an illegal financial network. The ED has not made any further public statements, and the investigation is still ongoing.

So far, Mahesh Babu has remained silent on both the ED summons and the Consumer Commission notice. There has been no official word from his legal team either.

In her complaint, the doctor who lost her savings stated that

“Mahesh Babu’s endorsement made the scheme look trustworthy.”

This quote is now at the center of the legal debate, as the complainant insists that it was the actor’s public backing that convinced her and many others to invest their money.

Click Here to Read Previous Reports on Property Fraud

author

Hardik Khandelwal

I’m Hardik Khandelwal, a B.Com LL.B. candidate with diverse internship experience in corporate law, legal research, and compliance. I’ve worked with EY, RuleZero, and High Court advocates. Passionate about legal writing, research, and making law accessible to all.

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