Hyderabad, Nov 24 Hyderabad-based Jayathri Infrastructures India Pvt Ltd diverted Rs 60 crore fraudulently collected from homebuyers to multiple entities, revealed the investigation by the Enforcement Directorate (ED).
ED’s Hyderabad Zonal Office said on Monday that it conducted search operations under the Prevention of Money Laundering Act (PMLA), 2002, at eight premises in connection with an investigation against Jayathri Infrastructures, its Managing Director Kakarla Srinivas, and associated entities on November 20 and 21.
Searches were conducted at the premises of Janapriya Group, Raja Developers and Builders, R.K. Ramesh, Satya Sai Transport, Sri Gayathri Homes, Siva Sai Constructions, etc, the Central agency said in a statement.
The agency initiated the investigation based on multiple FIRs registered by Telangana Police alleging that the firm fraudulently collected about Rs 60 crore from homebuyers through deceptive pre-launch schemes and failed to deliver promised flats or refunds.
ED investigation revealed that Proceeds of Crime (POC) generated by Jayathri Infrastructures India Pvt Ltd 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,” the ED said.
Searches conducted under Section 17 of the PMLA resulted in the seizure of digital devices and incriminating documents, as well as 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, it added.
Initial scrutiny indicates coordinated collusion to misappropriate investor funds and to divert project lands to third parties without allotting units to genuine purchasers.
The main accused, Kakarla Srinivas, was earlier arrested by Hyderabad Police and subsequently released on bail and is currently absconding.
The seized materials are being examined, and further investigation is underway to identify other persons involved and initiate further action under the provisions of the PMLA, 2002, the agency said.
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