A partnership that began with family trust in Hyderabad has ended in a major criminal case, with police accusing an entrepreneur of cheating a businesswoman out of crores of rupees in a food and beverage venture.
From Trust to Betrayal: The Genesis of the Partnership
The case, now under investigation by the Cyberabad police's Economic Offences Wing (EOW), revolves around a massive alleged fraud of ₹5.5 crore. The complainant, 58-year-old G Pavani from Manikonda, stated that the accused, Sundeep Kumar Reddy from Kompally, was her son's friend.
According to the official complaint, Reddy approached Pavani in 2016 with a proposal. He promised her an equal partnership and high returns if she financed a planned F&B business on his family's land. Trusting the family connection, Pavani agreed and began investing substantial funds over the subsequent years.
Their collaboration led to the establishment of a formal partnership firm, which eventually launched a restaurant in Kompally in 2018. However, Pavani alleges that from the start, Sundeep Reddy maintained exclusive control over the firm's bank accounts and all financial matters. He reportedly assured her that profits were being ploughed back into the business for growth.
Doubts, Denial, and Alleged Diversion of Funds
The businesswoman's suspicions began to grow in early 2025 when her repeated requests for audited financial statements were consistently ignored or evaded by Reddy. Her investigation revealed alarming details.
"I subsequently learned that the accused appointed his wife as the manager, handled most transactions in cash, and diverted funds for personal luxury expenses," Pavani alleged in her complaint to the police.
The situation reached a breaking point on April 3. When Pavani visited the restaurant to personally inspect the records and accounts, she was met with hostility. "I was denied entry, threatened, and told I would not recover a single rupee from the firm," she stated, describing the confrontation.
Legal Repercussions and Police Investigation
Following her detailed complaint, the Cyberabad EOW registered a formal case on December 1. The charges are serious and have been filed under specific sections of the new Bharatiya Nyaya Sanhita (BNS).
The case has been registered under:
- Section 316(2) for criminal breach of trust.
- Section 318(4) for cheating.
- These are read with Section 3(5) pertaining to common intention.
Officials from the Economic Offences Wing confirmed that a preliminary probe is actively underway. Investigators are currently verifying the exact scale and trail of Pavani's investments. They are also scrutinising the restaurant's ownership documents and all available financial records to establish the facts of the case.
This incident serves as a stark warning for individuals entering into business partnerships, even those rooted in personal or family connections. It underscores the critical importance of formal financial transparency, clear contractual agreements, and regular audits to protect all parties involved.
