Uncovering the Hyderabad Investment Fraud: What Happened to Startup Founder Kanthi Dutt?

Hyderabad police on Sunday arrested Kanthi Dutt, a well-known businessman and entrepreneur, over allegations of investment fraud from several high-profile people, including actress Parineeti Chopra. Several cases had been registered against him earlier this year, including accusations by Tritiyaa co-founder Srija Tippala.

Tippala alleged that Dutt ousted her as the director of the company and forged her credentials. She informed that Dutt replaced her with his mother as the director. She discovered the forgery through an RTI application after investing over ₹2.5 crore into the company. The controversy around Dutt deepened after India Accelerator (IA) accused him of misrepresenting financial data related to his earlier venture. IA accused Dutt of misrepresenting the financial data of SustainKart to lure investors. 

Uncovering the Hyderabad Investment Fraud: How Did Startup Founder Kanthi Dutt Allegedly Scam Bollywood Actors?

"The situation with SustainKart is highly concerning, given the serious discrepancies and financial misrepresentations that have emerged. The inflated revenue figures and manipulated sales data reported by the founder, Kanthi Dutt, have fundamentally violated the trust placed by investors," Munish Bhatia, co-founder of India Accelerator, was quoted as saying by YourStory. 

Reports indicate Kanthi Dutt allegedly raised funds from various individuals using his connections. According to police sources, many investors haven’t received returns on their investments and were trying to get in touch with the businessman. While many of the victims were reluctant to file complaints because of the unwanted media attention, the case gained momentum after Srija Tippala lodged a case against him.

The investigation reveals a pattern of collecting funds without proper accountability. The officials have taken Kanthi Dutt into custody following a thorough investigation of the complaints. The police also suggested that more victims might come forward after his detention as the case develops. The matter has sparked discussions about investment safety in the startup ecosystem. However, in his reply to IA in an Instagram post, Dutt clarified that all actions by the company were in agreement with India Accelerator (IA), their compliance, and fundraising advisors.