Major Benami Assets Probe in Hyderabad Uncovers Large-Scale Fund Diversion
The Income Tax Department has provisionally attached a key property in Medchal Malkajgiri district as part of a major investigation into alleged benami assets and large-scale diversion of institutional funds. This action follows an extensive probe into suspected financial irregularities linked to a religious educational institution located in Tarnaka, Hyderabad.
Property Attachment and Alleged Beneficial Ownership
The Hyderabad Investigation Benami Prohibition Unit attached a G+4 building with a penthouse at Kandlakoya village in Gundlapochampally municipality. The property was legally registered in the name of a nun's brother on October 8, 2024. However, officials allege the building was actually acquired using funds siphoned from the Congregation of Catechist Sisters of St Ann's during the tenure of Lourdhu Mary, who served as procurator for the institution.
Investigators identified the brother as the alleged benamidar (nominal owner) with Mary as the beneficial owner. The attachment order lists 16 properties linked to the family, including 14 registered in the brother's name, indicating possible further action in this ongoing investigation.
Alleged Financial Irregularities and Diversion Methods
According to the probe, funds were allegedly diverted between April 2020 and June 2025, with the total misappropriation estimated at approximately ₹21.4 crore. Investigators detailed several methods allegedly used to conceal the diversion:
- Projecting withdrawals as routine institutional expenditure
- Using fabricated bills and vouchers to create false documentation
- Maintaining duplicate account books to conceal actual transactions
- Keeping cash fee collections from students outside official records
The investigation traced specific diversions including ₹2 crore routed through bank transfers and off-book cash collections. Income tax authorities noted that the congregation's internal enquiry provided crucial evidence, including fabricated documents and duplicate accounts.
Recorded Statements and Confessions
In a recorded statement on October 31, 2025, Lourdhu Mary allegedly admitted to siphoning off cash fee collections and storing the money at her parents' home. She also stated that ₹50 lakh was repaid to the congregation in September of the previous year. The congregation has since removed Mary from all financial responsibilities.
Complex Money Trail and Financial Discrepancies
The attached Kandlakoya property is alleged to be part of a layered money trail. Investigators revealed that funds were routed through UPI and bank transactions involving relatives and associated accounts. Credits totaling ₹4.38 crore were traced to the brother's account, with many originating from untraceable sources, suggesting the use of accommodation entries.
Senior officials noted significant discrepancies in the financial claims. The brother allegedly claimed construction costs were met through loans but failed to provide supporting documentation or a verifiable financial trail. His declared income reportedly did not match the scale of investment in the property.
Canon Law Considerations and Institutional Response
The Benami Prohibition Unit examined the transactions in light of restrictions under Catholic canon law governing members of religious institutes, including limits on personal ownership and financial independence. The attachment order specifically mentioned canon law provisions regarding the vow of poverty.
Investigators alleged that the benami arrangement was used to bypass these religious norms while accumulating personal assets. The congregation cooperated with authorities by submitting internal enquiry findings and confession letters, and has initiated recovery proceedings for the alleged misappropriation.
The investigation continues as authorities examine the full extent of the alleged financial irregularities and potential connections to other properties listed in the attachment order.
