ED attaches properties worth ₹16.35 crore in BHEL housing society cheating case

The Directorate of Enforcement, Hyderabad zonal office, has provisionally attached five immovable properties valued at ₹16.35 crore in connection with a cheating case involving office bearers of M/s Vivekanand BHEL Employee Mutually Aided Cooperative House Building Society Ltd. and others.

The attached assets comprise open land registered in the name of builder M/s Tribha Ventures Pvt. Ltd., represented by P. Govardhan Reddy, and in the name of D. Srinivasa Rao, President of the Vivekanand BHEL Employees MAC House Building Society, officer from the ED said.

The enforcement agency initiated its investigation based on two cases registered at Ramachandrapuram police station in Cyberabad under various provisions of the Indian Penal Code, including cheating and criminal conspiracy, along with sections of the Telangana Depositors Protection Act. The cases were registered following complaints by members of the housing society alleging cheating, criminal breach of trust, diversion of deposits and misappropriation of funds collected for a housing project at Muthangi village. Police filed a chargesheet on July 1, 2025, against the president, treasurer and directors of the society, as well as the builder, alleging diversion of society funds and unlawful gains.

According to the ED, the society collected about ₹18.09 crore from 316 members for allotment of residential plots and construction of houses. However, the funds were allegedly diverted and misappropriated by the office bearers in conspiracy with the builder, instead of being used for the stated purpose.

Investigators said large sums were transferred from the society’s bank account to personal accounts of the builder and other entities. The money was allegedly withdrawn through self cheques and routed through multiple third party firms to generate cash. The diverted funds were then used to purchase land parcels, which were registered in the names of the builder and the society’s President instead of the society.

The ED said proceeds of crime amounting to about ₹17.31 crore were generated in the case. Further investigation is under progress.