Hyderabad: A major benami assets probe has uncovered alleged large-scale diversion of institutional funds, with the income tax department provisionally attaching a key property in Medchal Malkajgiri district.The action by the income tax department follows an investigation into suspected financial irregularities linked to a religious educational institution in Tarnaka. The Hyderabad investigation benami prohibition unit attached a G+4 building with a penthouse at Kandlakoya village in Gundlapochampally municipality, legally held in the name of a nun’s brother. Officials alleged the property was acquired using funds siphoned from the institution, Congregation of Catechist Sisters of St Ann’s, during the tenure of Lourdhu Mary, who served as procurator. The unit identified the brother as the alleged benamidar, with Mary as the beneficial owner. The attachment order lists 16 properties linked to the family, including 14 in the brother’s name, indicating possible further action. The order also mentioned Catholic canon law that speaks about the vow of poverty. Authorities said the congregation has since removed Mary from financial responsibilities.According to the probe, funds were allegedly diverted between April 2020 and June 2025, with the misappropriation estimated at around ₹21.4 crore. Investigators said the alleged diversion was carried out by projecting withdrawals as routine expenditure, using fake bills and vouchers, and maintaining duplicate account books to conceal transactions. Fee collections received in cash from students were also allegedly kept outside official records. Income tax authorities said the congregation’s internal enquiry provided key evidence, including fabricated documents and duplicate accounts. It traced specific diversions, including ₹2 crore routed through bank transfers and off-book cash collections. In a recorded statement on Oct 31, 2025, Mary is said to have admitted 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 Sept last year.The attached Kandlakoya property, registered on Oct 8, 2024, is alleged to be part of a layered money trail. Investigators said funds were routed through UPI and bank transactions involving relatives and associated accounts. Credits of ₹4.38 crore were traced to the brother’s account, many from untraceable sources, suggesting the use of accommodation entries. The brother is believed to have claimed construction costs were met through loans, but failed to provide supporting documents or a verifiable financial trail. Senior officials said that his declared income did not match the scale of the investment.The benami prohibition unit said the congregation submitted internal enquiry findings and confession letters, and initiated recovery proceedings for the alleged misappropriation. The unit added that the transactions were examined in light of restrictions under canon law governing members of religious institutes, including limits on personal ownership and financial independence. It also said the benami arrangement was used to bypass these norms while accumulating personal assets.
