Hyderabad: The Enforcement Directorate (ED) on Friday, December 19, arrested Kakarla Srinivas, Managing Director of Jayatri Infrastructures Private Limited, in connection with an alleged Rs 300 crore pre-launch real estate scam.
The ED booked a case based on the FIRs registered against Kakarla Srinivas early this year by the Hyderabad police.
The Srinivas collected large sums of money from home buyers by offering pre-launch schemes for residential projects. However, after collecting the funds, he allegedly failed to deliver the promised houses, thereby cheating buyers.
Srinivas arrested in Chennai, shifted to Hyderabad
ED officials arrested Srinivas in Chennai and shifted him to Hyderabad for further investigation. He had reportedly gone absconding soon after the ED registered a case against him.
In November, the Directorate of Enforcement (ED) officials conducted raids at eight different places against Jayathri Infrastructures India Pvt. Ltd. and its managing director, Kakarla Srinivas, and associated entities in the state.
The ED has stated that the accused allegedly siphoned off nearly Rs 300 crore through the fraudulent pre-launch offers. The funds were allegedly diverted and misused instead of being invested in the housing projects. ED officials said that Srinivas will be produced before a court shortly for further legal proceedings.
Further investigation is underway to trace the money trail and identify other persons involved in the scam.
Investigation based on multiple FIRs
The agency took up an investigation on the basis of multiple FIRs registered by Telangana Police alleging that the firm fraudulently collected about Rs. 60 Crore from home buyers through deceptive pre-launch schemes and failed to deliver promised flats or refunds.
It was revealed during the investigation that Proceeds of Crime (POC) generated by Jayathri Infrastructures by non-delivery of flats were 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.
