ED Raids Hyderabad Real Estate Firms in ₹60-Crore Homebuyer Fraud Case
The Enforcement Directorate’s (ED) Hyderabad Zonal Office recently conducted search operations at eight premises. These raids are part of an ongoing investigation into Jayathri Infrastructures India Pvt Ltd, its Managing Director, Kakarla Srinivas, and associated entities.
Searches were conducted at the premises of Janapriya Group, Raja Developers & Builders, R.K. Ramesh, Satya Sai Transport, Sri Gayathri Homes, Siva Sai Constructions, and others.
The ED initiated its investigation based on multiple FIRs registered by the Telangana Police. The FIRs allege that the company fraudulently collected about ₹60 crore from homebuyers through deceptive pre-launch schemes and failed to deliver the promised flats or provide refunds.
The ED’s investigation revealed that the proceeds of crime (POC) generated by M/s Jayathri Infrastructures India Pvt. Ltd. were diverted and layered through multiple entities with no genuine business activity. Several of these entities were found to be operating from fictitious or residential addresses, functioning as conduits to route investor funds through non-genuine transactions, thereby concealing and layering the POC.
Searches conducted under Section 17 of the PMLA resulted in the seizure of digital devices and incriminating documents, as well as the freezing of bank accounts. The seized material includes records of undelivered properties, MOUs, documents related to the alienation of project lands, and evidence showing the utilisation and current placement of the POC.
Initial scrutiny indicates coordinated collusion to misappropriate investor funds and divert project lands to third parties without allotting units to genuine purchasers. The main accused, Kakarla Srinivas, was earlier arrested by Hyderabad Police and later released on bail. He is currently absconding.
The seized materials are being examined, and further investigation is underway to identify additional persons involved and initiate action under the provisions of the PMLA, 2002.
