ED Raids Jayathri Infrastructures: Unveiling a ₹60 Crore Real Estate Fraud
The Directorate of Enforcement (ED), operating from the Hyderabad Zonal Office, carried out coordinated search operations on 20 and 21 November 2025 at eight premises linked to M/s Jayathri Infrastructures India Pvt. Ltd., its Managing Director Kakarla Srinivas, and associated entities. These operations were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Premises raided included those of M/s Janapriya Group, M/s Raja Developers & Builders, R.K. Ramesh, M/s Satya Sai Transport, M/s Sri Gayathri Homes, and M/s Siva Sai Constructions. The operation targeted assets, financial documents, and records associated with the alleged misappropriation of investor funds through deceptive pre-launch housing schemes.
The ED’s investigation was initiated based on multiple FIRs registered by the Telangana Police, alleging that Jayathri Infrastructures India Pvt. Ltd. fraudulently collected approximately ₹60 crore from homebuyers under pre-launch schemes and failed to deliver the promised flats or refund the amounts. Evidence gathered so far indicates that the Proceeds of Crime (POC) generated from non-delivery of flats were diverted and layered through multiple associated entities, many of which had no genuine business relationship with the developer. Several entities were found operating from residential addresses or fictitious offices, acting as conduits to obscure the financial trail and conceal illicit funds.
During the raids conducted under Section 17 of the PMLA, ED officials seized digital devices, incriminating documents, project MOUs, records of alienated lands, and other materials revealing the utilization and current placement of investor funds. Preliminary examination of the evidence indicates a coordinated scheme to misappropriate funds from genuine investors while diverting project lands to third parties without allotment of flats to legitimate buyers. Bank accounts linked to these transactions have been frozen, and the agency is tracking the movement of POC across multiple entities.
The main accused, Kakarla Srinivas, was earlier arrested by Hyderabad Police but subsequently released on bail. He is currently absconding, and the ED is actively monitoring his movements to facilitate his arrest. Investigators are also examining other individuals and entities involved in the complex financial network, and additional enforcement actions under the PMLA are expected in the coming weeks.
ED officials emphasized that the case highlights the risks associated with pre-launch real estate schemes lacking transparency. The investigation focuses on tracing diverted investor funds, identifying beneficial owners of associated entities, freezing and confiscating illicitly obtained assets, and initiating further legal proceedings under the PMLA, 2002. The raids and ongoing examination are aimed at ensuring that homebuyers’ investments are safeguarded and that those involved in systematic financial deception face strict legal consequences.
This case underscores the need for regulatory oversight, investor due diligence, and transparency in real estate projects. The ED’s actions send a clear signal: fraudulent fund diversion and manipulation of property allotments will not be tolerated, and all proceeds of crime will be traced, attached, and monetized to benefit victims. The agency confirmed that further updates on asset seizure, entity investigations, and legal actions will be released as the investigation progresses.
