Hyderabad: Enforcement Directorate arrests Jayathri Infra MD for real estate fraud
Kakarla Srinivas allegedly collected over Rs 60 crore from several people under the guise of a pre-launch offer.
Hyderabad: The Enforcement Directorate on Friday arrested Kakarla Srinivas, the Managing Director of Jayathri Infra for real estate fraud of Rs 300 crore, Tv9 Telugu reported.
He had been absconding for some time and was apprehended by officials in Chennai. He will be produced in court today, police officials said.
Kakarla Srinivas has allegedly collected over Rs 60 crore from several homebuyers under the guise of a pre-launch offer. Based on a case previously registered at the Hyderabad CCS (Central Crime Station), the ED registered another case and launched an investigation.
As part of this investigation, the ED conducted raids at eight locations in the city in November. They inspected Jayathri Infrastructure and its affiliated companies, seizing several documents and freezing bank accounts. Following this, they arrested Kakarla Srinivas, who had been on the run.
Scams in Hyderabad, Rajahmundry:
He found Jayathri group in February 2021 with 19 other directors and launched Hilton Jaya Diamond with much fanfare. They allegedly pulled off a similar scam in Rajahmundry, Andhra Pradesh. Other accused in the case are out on bail, reports said.
What is the 300 crore scam?
The money generated through this scam was reportedly diverted and layered via multiple entities. These entities functioned from fictitious residential addresses and were conduits to reroute investor funds.
Based on an FIR, the agency also carried out searches at Janapriya group, Raja Developers and Builders, RK Ramesh, Satya Sai Transport, Sri Gayathri Homes and Siva Sai Constructions.
Incriminating documents and digital devices were seized after searches were conducted in November, under Section 17 of the PMLA. Bank accounts were also frozen later.
The seized documents included records of undelivered flats, MoUs and project lands. The investigation revealed that there was coordinated collusion to misappropriate funds and to divert project land to third parties and not allocating units to genuine buyers.