A Prominent Tollywood Actor Served Legal Notice Over ₹34.8 Lakh Real Estate Scam

In a development out of Telangana, Telugu actor Mahesh Babu has been issued a legal notice by the Ranga Reddy District Consumer Commission. The notice stems from a complaint filed by a Hyderabad‐based doctor, who alleges she was deceived into investing ₹34.8 lakh in a non-existent plot developed by Sai Surya Developers, relying on the actor's endorsement.

 

Key Facts

• The complainant alleges Sai Surya Developers accepted ₹34.8 lakh for plots that were never delivered, and claims that Mahesh Babu’s endorsement lent credibility to the fraud.

• The actor is named as the third respondent under consumer protection laws, accused of "misleading buyers" through his endorsement.

• In April 2025, the Enforcement Directorate (ED) reportedly summoned Mahesh Babu in connection with a money-laundering investigation related to Sai Surya Developers and the Surana Group. The actor had reportedly received ₹5.9 crore for brand ambassadorship, though the ED has not named him an accused.

 

Legal Implications

• Under India’s Consumer Protection Act, celebrity endorsers can be held liable if the promoted services or products are found misleading or fraudulent, particularly when a specific consumer relies on that endorsement.

• The ED's involvement suggests potential investigations under the Prevention of Money Laundering Act (PMLA) concerning the alleged payment structures and fund transfers.

 

What Happens Next

• The Consumer Commission will review the notice served to the actor and may schedule hearings for evidence and response.

• Possible outcomes include compensation orders against the developer and potentially the endorser, if causation and reliance are established.

• The ED probe into the ₹5.9 crore payment may expand depending on findings, though no charges have been filed against Mahesh Babu to date.

 

Context & Past Incidents

• This is not the first time Mahesh Babu’s endorsements have attracted legal scrutiny. He previously faced ED questioning in cases relating to Sai Surya Developers and other entities.

• The case highlights persistent concerns over celebrity accountability in the wake of rising real estate fraud in India.

 

How a Real Estate Lawyer Can Help?

In cases involving real estate fraud, endorsements, or misleading advertisements, a real estate lawyer can assist you by:

 

• Reviewing and verifying legal documentation of the project.

• Advising on liability and risk for celebrity endorsements.

• Assisting victims in filing complaints and seeking compensation.

• Representing clients in litigation and regulatory proceedings.

 

Need Legal Guidance? Kaden Boriss offers expert legal counsel in real estate disputes, endorsements, and fraud matters.

 

Let our experienced team help you protect your rights and reputation.

 

Takeaways

• Celebrity endorsements must be exercised with due diligence; reliance on such endorsements by consumers can trigger liability under consumer protection statutes.

• Real estate developers and public figures must ensure transparency and genuine delivery when promoting services or projects.

• Regulatory probes like consumer complaints and ED investigations may run concurrently and impact reputational and legal outcomes.

 

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