HYDERABAD: In a major relief to over 4,000 investors across the Telugu states, the Telangana High Court has upheld the attachment of properties belonging to Hyderabad-based Dhanwantari Foundation International (DFI) and ordered steps to compensate the alleged victims.
Justice K Sujana, while dismissing a batch of appeals filed by DFI, directed the authorities to identify the affected investors, auction the attached properties and distribute the proceeds in proportion to individual investments. The properties, attached by a Special Court at Nampally in August 2025, are spread across eight prime locations in the two Telugu states and are estimated to be worth over Rs 500 crore.
DFI is accused of mobilising large sums from members of a particular community by promising unusually high returns. While initial payouts were allegedly made to gain investors’ confidence, the firm later defaulted after collecting substantial funds.
Following complaints, the Central Crime Station, Hyderabad, registered an FIR in 2023 and subsequently filed a chargesheet. During the hearing, DFI’s counsel argued that the attachment orders were arbitrary and violated principles of natural justice.
Opposing the plea, Public Prosecutor Palle Nageshwar Rao told the court that investigations revealed DFI had collected nearly Rs 762 crore, though the firm admitted to receiving only Rs 516 crore, pointing to diversion and suppression of facts. He added that 50 bank accounts linked to DFI, its group entities and key individuals had been frozen, with balances totalling Rs 27.45 lakh.
Citing larger public interest, the court ruled in favour of the investors and ordered the formation of a four-member committee, including a former district judge and a senior chartered accountant, to oversee recovery and ensure fair disbursal.