₹300 Cr real estate fraud: ED arrests Jayathri Infrastructures MD Kakarla Srinivas in Chennai

Hyderabad: Enforcement Directorate (ED) on Thursday arrested Kakarla Srinivas, Managing Director of Jayathri Infrastructures Private Limited, in an alleged Rs 300-crore real estate fraud case.

The company had thrown a `pre-launch offer’ bait to extract money from the gullible people.

Srinivas was apprehended in Chennai and brought to Hyderabad for further legal proceedings. The case has sent shockwaves through the real estate sector, with investigators warning homebuyers to exercise caution against misleading promotional schemes.

Arrest after months on the run

According to ED officials, Srinivas had been absconding since the registration of the ED case. After sustained tracking, he was finally traced and taken into custody in Chennai before being shifted to Hyderabad.

‘Pre-launch offer’ used to lure buyers

Investigations revealed that Srinivas allegedly collected large sums of money from homebuyers by promising houses under an attractive “Pre-launch offer” scheme. However, despite receiving payments, the promised houses were never delivered, leaving hundreds of buyers cheated.

Fraud estimated at ₹300 crore

The ED stated that preliminary findings indicate the scale of the fraud to be around Rs 300 crore. The agency is examining financial records and transactions to identify the money trail and possible diversion of funds.

To be produced before Court

ED officials said that Srinivas will be produced before a competent court shortly, and further custodial interrogation may be sought to uncover the full extent of the scam and identify other individuals involved.

Accused was out on bail, has a record of such scams

The main accused, Kakarla Srinivas, reportedly founded Jayatri Group in February 2021 along with 19 other directors. Their first venture, Hilton Jaya Diamond, was launched with significant fanfare. Srinivas and a few others were arrested but are currently out on bail. Sources also allege that the same group had previously pulled off a similar scam in Rajahmundry.

What is the case about?

The money generated by Jayathri through the non-delivery of flats was diverted and layered through multiple entities in the absence of genuine business relationships.

Several of these entities were found operating from fictitious or residential premises and acted as conduits to route investor funds through non-genuine transactions, facilitating concealment and layering of POC.

Based on an FIR, the Enforcement Directorate carried out searches at the premises of Janapriya Group, Raja Developers & Builders, RK Ramesh, Satya Sai Transport, Sri Gayathri Homes, and Siva Sai Construction.

Plan to sell plots to third parties illegally

On November 24, 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, alienation of project lands, and material revealing the utilisation and current placement of the POC. Initial scrutiny indicates coordinated collusion to misappropriate investor funds and to divert project lands to third parties without allotting units to genuine purchasers.