300 Crore Gone: Shocking Pre-launch Scam Rocks Hyderabad Market

Pre-launch offer scam has hit Hyderabad’s real estate market hard, causing an estimated loss of Rs 300 crore to over 300 homebuyers. The accused company, Jayatri Real Estate, allegedly lured buyers with attractive pre-launch offers on luxury apartments in prime locations like Gachibowli, Kondapur, and Miyapur. However, the promised projects never materialized, and the investors were left high and dry.

According to victims, the scam started as early as 2021, when Jayatri Real Estate began aggressively marketing upcoming residential projects at below-market prices, claiming that the offers were available only during the pre-launch phase. The builders showed glossy brochures, staged site visits on empty plots, and even offered forged approvals to gain trust.

How the Scam Worked

The pre-launch offer scam relied on psychological tactics and fake urgency. Jayatri promised flats worth Rs 1 crore for as low as Rs 65–70 lakh in prime locations. Buyers were told they could resell at a premium after official launch, earning quick profits.

The builders collected booking amounts ranging from Rs 5 lakh to Rs 25 lakh per buyer, with some even paying up to 90% of the flat value. These transactions were mostly done via cheques or bank transfers to appear legitimate.

But as construction deadlines passed, buyers grew suspicious. The company repeatedly delayed projects, citing approvals, material shortages, and labor issues. When buyers visited the sites again, they found barren land or unrelated constructions.

Scale of the Fraud

As per initial investigations by the Hyderabad Economic Offences Wing (EOW), over Rs 300 crore was collected by Jayatri Real Estate from unsuspecting homebuyers between 2021 and 2024. The fraud spans multiple housing schemes, most of which were never approved by the Greater Hyderabad Municipal Corporation (GHMC) or RERA (Real Estate Regulatory Authority).

The developers forged No Objection Certificates (NOCs), environmental clearances, and even presented fake tie-ups with known construction brands to gain trust. In some cases, buyers were taken to fake offices, complete with model flat mockups.

Victims Speak Out

Ravi Kumar, a software professional, shared his ordeal:

“I invested Rs 18 lakh as a pre-booking for a 3BHK in Miyapur. I visited the site, met the builder, and even got receipts. But now there’s nothing – no project, no refund, and the office has shut down.”

Like Ravi, many middle-class professionals, NRIs, and first-time buyers became victims of this pre-launch offer scam. Most chose Jayatri due to the low prices, early bird discounts, and flexible payment plans. Some buyers even took personal loans or liquidated savings to grab what looked like a golden deal.

Authorities Take Action

Following multiple complaints, Hyderabad police registered FIRs under IPC Sections 420 (cheating), 406 (criminal breach of trust), and 468 (forgery) against the Jayatri Real Estate owners and directors. The main accused, S. Raghunandan Rao, has been absconding since early May 2025.

The EOW has frozen over 25 bank accounts linked to Jayatri and is investigating possible money laundering. Police suspect the funds were diverted to shell companies and offshore accounts. Authorities are also examining the role of real estate agents and financial advisors who facilitated the scam.

Government and RERA Response

The Telangana State RERA has suspended all approvals related to Jayatri Real Estate. Officials are working on a public advisory urging buyers to verify projects on the RERA website before booking.

A senior GHMC officer noted:

“Pre-launch offers without RERA registration are illegal. Buyers must insist on RERA registration numbers and avoid making large payments on unapproved projects.”

To restore trust, the government is considering fast-track courts for real estate fraud cases and mandatory digital records of transactions.

Legal Options for Buyers

Legal experts say that buyers can:

1. File police complaints with supporting documents.
2. Approach the Consumer Forum for refund and compensation.
3. File cases under RERA Act for misrepresentation and non-delivery.
4. Join class-action suits to speed up recovery.

However, experts warn that full recovery might be difficult if the assets of the accused are not traceable.

How to Avoid Pre-launch Offer Scams

With rising property rates, pre-launch offers can be tempting. But here are safety tips to avoid becoming a victim:

• Verify RERA registration before investing.
• Avoid paying more than 10% upfront before an agreement.
• Check ownership and land title independently.
• Avoid cash transactions or shady offers.
• Visit the site personally, and ask for project approvals.
• Check builder reputation through online forums and past projects.

Conclusion

The pre-launch offer scam in Hyderabad serves as a harsh reminder for homebuyers to prioritize due diligence over discounts. As Jayatri Real Estate’s multi-crore fraud unravels, it exposes the gaps in real estate regulation, builder accountability, and public awareness.

Authorities continue to search for the culprits and recover lost money. In the meantime, thousands of families are left in financial limbo, hoping justice will be served and real estate laws will become stricter to protect future buyers.

Also Read – Indian HNIs Cut Savings But Real Estate Gains Trust