Telangana HC upholds attachment of accused’s properties in ₹516 Cr DFI Trust cheating case; appoints panel to oversee auction
The case was registered at the Central Crime Station (CCS), Hyderabad, in December 2023
By - Newsmeter Network
Representational Image
Hyderabad: Telangana High Court has upheld the decision to attach properties of the accused in the Rs 516 crore Dhanwantari Foundation International (DFI) Trust cheating case.
The verdict has cleared the way for the auction to compensate nearly 4,000 victims, most of them senior citizens.
The court has appointed a high-level committee to oversee the auction of attached assets and ensure early disbursal of proceeds to depositors who were allegedly cheated by the trust.
Case registered on Senior Citizen’s complaint
The case was registered at the Central Crime Station (CCS), Hyderabad, in December 2023, based on a complaint filed by Susrala Narsimha Murthy. A case was booked under Sections 406 and 420 read with 34 IPC, along with Section 5 of the Telangana State Protection of Depositors of Financial Establishments (TSPDFE) Act.
Investigations revealed that Dhanwantari Foundation International Trust, represented by its director Dr. P. Kamalakar Sharma and others, allegedly lured innocent investors, mainly senior citizens, by exploiting sentiments linked to the Brahmin community and promising high returns within a fixed period.
₹516 crore collected from 4,000 investors
According to police, the accused collected approximately Rs 516 crore from around 4,000 depositors, failing to return either the promised profits or the principal amounts, thereby cheating the victims.
Properties worth hundreds of crores identified
During the investigation, police identified vast assets acquired using the defrauded funds, including nearly 450 acres of land across Telangana and Andhra Pradesh and about 3,000 square yards of commercial space in prime locations in Hyderabad.
The Deputy Commissioner of Police (DCP), Detective Department, acting as the Competent Authority under the Depositors Act, submitted proposals to the government for attachment of the properties. The government subsequently issued eight Government Orders (GOs) granting ad-interim attachment.
Sessions court makes attachments absolute
The Competent Authority later approached the Sessions Court, which upheld the government’s action and made the ad-interim attachments absolute, legally securing the properties for the benefit of the victims.
High Court rejects accused’s appeal
Challenging the Sessions Court orders, the accused filed criminal appeals before the Telangana High Court. However, after examining the submissions and counters filed by the Competent Authority, the High Court dismissed the appeals and ruled in favour of the state.
Committee appointed for Auction and Refunds
The High Court has appointed a committee comprising a retired District Judge (Chairperson), the DCP (Competent Authority), and a senior Chartered Accountant to conduct the auction of the attached properties and ensure transparent disbursal of funds to the victims at the earliest.
Police assure justice to victims
Hyderabad Police Commissioner V.C. Sajjanar said the police remain committed to securing justice for depositors and ensuring that the proceeds from the auction are returned to victims without delay.
