High Court Orders Auction of Dhanvantari Foundation Assets to Compensate Victims

The Telangana High Court on Tuesday directed the State government to auction the attached assets of Hyderabad-based Dhanvantari Foundation International (DFI) and distribute the proceeds among depositors who were allegedly cheated by the company.

The court ordered that the money generated from the auction of properties attached by the Nampally Special Court be paid to victims in proportion to their individual investments. The ruling is expected to provide relief to nearly 4,000 victims from Telangana and Andhra Pradesh.

According to the prosecution, DFI collected large sums from the public by promising unusually high returns. Complaints were filed in 2023 after the company failed to repay deposits. Investigations by the Central Crime Station (CCS), Hyderabad, revealed that DFI had assets worth nearly ₹500 crore across eight locations in the two Telugu states, including over 450 acres of land and a commercial complex in Hyderabad.

While the prosecution claimed the company had mobilised around ₹762 crore, DFI reportedly admitted to collecting ₹516 crore. The Nampally Special Court had earlier ordered the attachment of these assets in August.

A petition filed by DFI challenging the attachment was dismissed by Justice K. Sujana, who upheld the lower court’s order. The High Court further directed the formation of a four-member committee, including a senior chartered accountant, to oversee the auction process and ensure transparent and proportional distribution of funds to the victims.

The judgment is seen as a significant step toward delivering justice to thousands of depositors affected by the alleged financial scam.