Hyderabad: ED Arrests Jayatri Infra MD in Rs 300 Crore Housing Fraud
The Enforcement Directorate (ED) made a significant move on Friday, December 19, by arresting Kakarla Srinivas, the Managing Director of Jayatri Infrastructures Private Limited. The arrest was made in connection with an alleged Rs 300 crore pre-launch real estate scam.
The ED initiated the case based on FIRs registered earlier this year by the Hyderabad police. Kakarla Srinivas is accused of collecting large sums of money from home buyers by offering pre-launch schemes for residential projects. However, after amassing the funds, he allegedly failed to deliver the promised houses, thereby cheating numerous buyers.
Srinivas was arrested in Chennai and subsequently shifted to Hyderabad for further investigation. He had reportedly gone into hiding soon after the ED registered a case against him. In November, the ED conducted raids at eight different locations against Jayathri Infrastructures India Pvt. Ltd. and its managing director, as well as associated entities in the state.
The ED has stated that the accused allegedly siphoned off nearly Rs 300 crore through fraudulent pre-launch offers. The funds were allegedly diverted and misused instead of being invested in the housing projects. ED officials confirmed that Srinivas will be produced before a court shortly for further legal proceedings.
Further investigation is currently underway to trace the money trail and identify other individuals involved in the scam. The agency took up the investigation based on multiple FIRs registered by the Telangana Police, which alleged that the firm fraudulently collected about Rs 60 crore from home buyers through deceptive pre-launch schemes. The firm failed to deliver the promised flats or refunds.
During the investigation, it was revealed that Proceeds of Crime (POC) generated by Jayathri Infrastructures by non-delivery of flats were diverted and layered through multiple entities. These entities operated in the absence of genuine business relationships, often from fictitious or residential premises. They acted as conduits to route investor funds through non-genuine transactions, facilitating the concealment and layering of POC.
