Telangana HC seeks action in Gadwal court Rs 3.08 cr scam case

The High Court said land losers cannot be denied compensation because of alleged fraud by court staff in diverting Rs 3.08 crore deposited in Gadwal court.

Hyderabad: The Telangana High Court has held that land losers cannot be denied compensation due to irregularities committed by court staff in the alleged diversion of Rs 3.08 crore deposited in the Gadwal Senior Civil Judge Court between 2015 and 2022.

A division bench comprising Justice P. Sam Koshy and Justice Nandikonda Narsing Rao observed that victims who lost valuable agricultural lands for a public project were being deprived of the benefits of compensation because of the misconduct of court employees.

The court directed the High Court administration, Gadwal district court authorities and the Anti-Corruption Bureau (ACB) to immediately take steps for a permanent resolution of the issue.

The bench further said it was the responsibility of the ACB to recover the diverted money from the accused involved in the scam and ensure that the amount is re-deposited into the court account so that the rightful landowners can be paid compensation.

The court also ordered authorities to process 120 pending compensation cheque petitions by following a proper procedure and ensuring payments are made legally to affected landowners.

Petition challenges Gadwal court’s compensation rejection

The directions came while hearing a petition filed by K Hanumanthu, who challenged the rejection of his compensation claim by the Gadwal court. Hanumanthu sought the release of Rs 18.22 lakh, including interest, towards compensation for 7.12 acres of land acquired in 2008 for the Ryalampadu Balancing Reservoir project in Jogulamba Gadwal district.

The High Court noted that ownership disputes related to the acquired land had already been resolved by courts, making the rejection of the compensation claim unjustified.

After examining records, the bench observed that the ACB had registered a case over the alleged diversion of compensation funds through cheques issued in the name of the wife of Y Satyanarayana, who served as Senior Superintendent in the Gadwal court between 2015 and 2022.

According to the court, cheques amounting to Rs 3.08 crore were allegedly fraudulently issued as part of the scam.

The bench said that merely because of the scam, compensation cheques relating to deposits made before 2022 could not be indefinitely withheld.

During the hearing, counsel representing the High Court informed the bench that compensation payments had been stalled because registers and default records connected to the fund diversion had either gone missing or had been tampered with. It was also submitted that nearly 120 cheque petitions were currently pending.

HC’s directions

The High Court, however, held that it was not legally sustainable to reject compensation claims indiscriminately merely because the scam had taken place during 2015-2022.

The bench directed the district judge to coordinate with the ACB Director and the investigating officer to ensure recovered funds are deposited into the CCD account and distributed to eligible claimants.

The court also specifically directed the district court to release Hanumanthu’s compensation amount within three months.