ED Arrests Jayathri Infra MD in Multi-Crore Real Estate Pre-Launch Fraud Case
Hyderabad: The Enforcement Directorate (ED) has arrested Kakarla Srinivas, the managing director of Hyderabad-based Jayathri Infrastructures India Pvt Ltd, in a multi-crore real estate pre-launch fraud case. Srinivas, who had been on the run for months, was apprehended by the ED's Hyderabad unit in Chennai on Thursday evening. He was subsequently produced before the special PMLA court in Rangareddy on Friday and remanded in judicial custody until December 31. The case involves alleged money laundering linked to large-scale cheating of homebuyers and investors.
The ED launched an investigation under the Prevention of Money Laundering Act (PMLA) based on multiple FIRs registered by the Cyberabad police against Jayathri Infrastructures, its MD Srinivas, Jayathri Reliabilities India Private Ltd, and others. The FIRs were filed following numerous complaints from homebuyers and investors who alleged cheating, criminal breach of trust, and the diversion of funds collected for real estate development.
According to investigators, victims were promised pre-launch flats, commercial units, metro station stalls, and assured rental returns, none of which materialized. ED sources revealed that the investigation found that Srinivas had generated Rs 61 crore by allegedly cheating homebuyers. An analysis of bank accounts showed that the proceeds of crime were layered through multiple bank accounts, followed by transfers to group companies, directors, family members, and substantial cash withdrawals. Funds were also used for acquiring immovable properties, repaying unrelated liabilities, and circulating through proxy entities, thereby concealing their true origin and ownership.
Srinivas was initially arrested by KPHB police on May 21 and granted bail in July. After his release, he absconded and remained untraceable despite multiple summonses being issued to his residential and office addresses. The ED conducted searches at eight premises and attempted to locate him at nine different locations, all of which were unsuccessful. These searches led to the recovery of incriminating documents revealing the transfer and diversion of proceeds of crime to other persons and entities.
Sustained intelligence gathering indicated that Srinivas was likely to travel to Chennai in connection with the alleged sale and purchase of properties. Acting on this information, officers from the ED Hyderabad zonal office apprehended him from Towers Club, Anna Nagar, on Thursday evening. The arrest marks a significant step in the investigation and brings hope to the hundreds of affected homebuyers and investors.
