ED Expands Probe into Hyderabad Real Estate Fraud with Searches Across Eight Locations

The Enforcement Directorate has stepped up its investigation into a significant real estate fraud case in Hyderabad, conducting searches across eight locations connected to Jayathri Infrastructures India Pvt Ltd and its managing director, Kakarla Srinivas. The case, which stems from multiple complaints filed by homebuyers, alleges that nearly ₹60 crore was collected through deceptive pre-launch schemes that never resulted in delivered flats or refunds.

According to officials, the ED’s coordinated operation covered commercial properties, residential premises and locations associated with companies reportedly used to divert investor funds. During the searches, investigators seized digital devices, financial documents and transaction records. Several bank accounts believed to have been used for layering illegally obtained money have also been frozen, marking a crucial step in tracking the flow of funds.

Preliminary analysis suggests that the money collected from homebuyers was routed through a network of shell companies lacking genuine commercial activity. Many of these entities were registered under fictitious or residential addresses, indicating their purpose was primarily to conceal and distribute the illicit proceeds. Officials believe this layering strategy was designed to obscure the money trail and impede regulatory detection.

The seized material includes details on undelivered projects, land dealings and instances where investor funds were allegedly diverted instead of being used for construction. Early scrutiny points to coordinated collusion among key individuals to misappropriate investments and transfer project lands to third parties, further deepening the losses faced by homebuyers.

Central suspect Kakarla Srinivas, previously arrested and later released on bail, has reportedly gone absconding, raising concerns among investigators. Authorities are expected to intensify their efforts to trace his whereabouts, especially as more evidence emerges.

The case has gained attention due to both the scale of alleged fraud and the number of homebuyers affected. Many investors have waited years for updates on their properties, pushing for firm action from authorities. The ED’s recent searches are seen as a significant step forward in establishing accountability.

Officials confirmed that further investigation is underway to uncover additional financial links, identify more beneficiaries of the diverted funds and explore possibilities for recovering the money. The case is expected to evolve as the ED analyses the seized evidence in the coming weeks.