Article Today, Hyderabad:
A massive real estate scam has come to light in Hyderabad, with allegations that a company named Jayatri Groups defrauded investors of nearly Rs.300 crore. Despite the arrest of one of the company’s directors in January 2023, victims claim he was released on bail and is now absconding. The scam has especially affected middle-class families and retired individuals who invested their life savings.
False Promises Through Pre-Launch Offers
Jayatri Infrastructure Pvt. Ltd. attracted customers with grand promises of real estate projects in areas like Gopanpally and Kukatpally. These included eye-catching pre-launch deals for ventures such as Westin Galaxy, metro station stalls, farm lands, and resort plots. However, victims now allege that these projects existed only on paper. The lands were neither registered under the company’s name nor physically verifiable. According to police, the scam was executed through more than 20 shell companies, with over 50 individuals acting as directors, CEOs, and managers to carry out the fraud. The group also extended their fraudulent activities beyond real estate into granite trading, supermarkets, electric two-wheeler businesses, and even a foundation named Jaya Foundation which was allegedly used for tax evasion.
Victims Speak of Their Losses
Most victims of the scam come from modest backgrounds, including retired employees who had trusted the company with their savings. One such victim said, “After retirement, I invested all my money in Jayatri Groups hoping for secure returns. Now I have nothing left. I’ve filed multiple complaints but the police didn’t take any action.” Another victim, Arun Santosh (name changed), recalled, “In 2021, I invested Rs.11.25 lakh in the Westin Galaxy project based on a recommendation from a realtor friend. The construction never progressed, even after the main accused was released from jail.”
RERA’s Involvement Brings Limited Relief
The victims approached the Telangana Real Estate Regulatory Authority (TGRERA) seeking justice. In September 2023, RERA imposed a penalty of Rs.50 lakh on the director involved and ordered that the investors be repaid with 10% interest. The authority also suggested that victims could pool their funds to complete the project themselves. An engineering team from RERA found that 66% of the construction work had been completed and estimated that an additional Rs.7.2 crore would be needed to finish the remaining work.
Criminal Past and Mafia-Like Operations
Reports on real estate forums and websites indicate that the accused has a history of similar fraudulent activities in Visakhapatnam, Eluru, Dwaraka Tirumala, and West Godavari districts. He was even jailed in 2016 before moving to Hyderabad and launching a new company to continue his scams. Police now believe that the fraud was not an isolated case but part of a larger, mafia-style criminal network involving multiple accomplices who operated parallel scams in the real estate sector. This large-scale fraud has once again highlighted the vulnerability of common investors and the urgent need for stronger regulation and enforcement in the real estate industry.
