The Enforcement Directorate (ED) has apprehended Kakarla Srinivas, the managing director of Hyderabad-based Jayathri Infrastructures India Pvt Ltd, marking a significant breakthrough in a multi-crore real estate pre-launch fraud case. Srinivas, a key accused who had been evading authorities for months, was arrested by the ED's Hyderabad unit from Chennai on Thursday evening.
The Arrest and Court Proceedings
Srinivas was produced before the special PMLA court in Rangareddy on Friday, where he was remanded in judicial custody until December 31. This case is centered on allegations of money laundering connected to the large-scale cheating of numerous homebuyers and investors. The ED initiated its investigation under the Prevention of Money Laundering Act (PMLA) based on multiple First Information Reports (FIRs) previously registered by the Cyberabad police.
Scale of the Alleged Fraud
The FIRs were filed after complaints poured in from aggrieved homebuyers and investors. They accused the company, its MD, and associated entities like Jayathri Reliabilities India Private Ltd of cheating, criminal breach of trust, and diverting funds collected for real estate projects. Investigators state that victims were lured with promises of pre-launch flats, commercial units, metro station stalls, and assured rental returns, none of which ever materialized.
ED's probe has uncovered staggering financial details. "PMLA investigation revealed that Rs 61 crore was generated by Srinivas by allegedly cheating homebuyers," revealed sources. Forensic analysis of bank accounts showed that the proceeds of crime were meticulously layered. Funds were moved through multiple bank accounts before being transferred to group companies, directors, family members, and withdrawn as substantial cash amounts.
Money Trail and Evasion Tactics
The ill-gotten money was allegedly used for acquiring immovable properties, repaying unrelated liabilities, and circulated through proxy entities to conceal its true origin and ownership. This arrest is not Srinivas's first brush with the law in this matter. He was earlier arrested by KPHB police on May 21 and was granted bail in July. However, after securing bail, he absconded and remained untraceable, ignoring multiple summons sent to his known residential and office addresses.
The ED conducted extensive searches at eight premises and attempted to locate him at nine different locations, all of which proved futile. These searches, however, led to the recovery of incriminating documents that detailed the transfer and diversion of the crime's proceeds to other persons and entities. Sustained intelligence efforts finally indicated that Srinivas was likely to travel to Chennai for alleged property dealings, leading to his apprehension from the Towers Club in Anna Nagar on Thursday evening.
This case highlights the severe risks in the pre-launch real estate sector and underscores the ongoing efforts by central agencies to track down economic offenders who cheat common citizens of their lifelong savings.
