Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, conducted 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. The searches were carried out 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, M/s Siva Sai Constructions, among others. The operation targeted assets, financial documents, and records associated with the alleged misappropriation of investor funds through deceptive pre-launch housing schemes.
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FIRs allege ₹60 crore fraud through undelivered flats
The ED’s investigation was initiated based on multiple FIRs registered by 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.
Seizure of documents, digital devices, and freezing of bank accounts
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.
Accused Managing Director remains absconding
The main accused, Kakarla Srinivas, was earlier arrested by Hyderabad Police but subsequently released on bail. He is currently absconding, and 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.
Ongoing probe to protect homebuyers’ interests
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
- 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.
Implications for the real estate sector
This case underscores the need for regulatory oversight, investor due diligence, and transparency in real estate projects. 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.
