Hyderabad’s startup scene has been rocked by the arrest of once-celebrated entrepreneur Kanthi Dutt. He is facing serious allegations of investment fraud.

Dutt is known for his connections with high-profile individuals and celebrities including Bollywood actress Parineeti Chopra.

The story took a dramatic turn when Tritiyaa co-founder Srija Tippala stepped forward with claims. She accused Dutt of forging her credentials to remove her as the director of the company. She had invested more than ₹2.5 crore into the venture and uncovered the alleged forgery through an RTI application.

The case came into public eye after Tippala had the courage to file a formal complaint against Dutt.

Prominent startup incubator India Accelerator (IA) accused Dutt of inflating revenue figures and manipulating sales data for his previous venture SustainKart. IA co-founder Munish Bhatia said such actions betrayed the trust of investors who believed in Dutt’s vision.

The network and charisma of Dutt helped him in securing investments from various individuals. Many investors saw no returns and struggled to reach him.

The case reveals there is a serious issue in the pattern of fund mismanagement and startups should be accountable for each penny spent. The arrest has also sparked debate about bringing some strict rules and regulations in the world of startups and particularly related to the funds.

Dutt meanwhile has denied the allegations claiming that all actions were taken in agreement with IA’s advisors.

It is suggested that entrepreneurs must prioritize integrity and investors must exercise caution in the startup setup. The glitz of entrepreneurship can often overshadow the need for accountability. However, cases like this remind us of the heavy price of overlooking ethics.