Austria’s Supreme Court has upheld former billionaire real estate tycoon René Benko’s conviction and two-year prison sentence in an insolvency-related fraud case involving an alleged ₹3 crore asset transfer. The court also overturned his acquittal in a separate ₹3.6 crore payment case and ordered a fresh trial, adding to the legal challenges facing the former Signa Group chief.
Conviction Linked to Asset Transfer
The upheld conviction relates to a financial transfer of approximately ₹3 crore made in late 2023. Prosecutors alleged that Signa, Benko’s real estate empire, was already under severe financial stress and moving toward insolvency at the time.
According to the prosecution, the transfer was presented as a gift to Benko’s mother but was intended to shield assets from creditors. The Supreme Court upheld the lower court’s conviction and two-year prison sentence, leaving Benko with no further ordinary avenue of appeal in this case.
Fresh Trial Ordered in Separate Charge
The court took a different view on a second allegation involving advance rent and other payments of approximately ₹3.6 crore for a house in Innsbruck. A lower court had earlier acquitted Benko on that charge.
The Supreme Court set aside the acquittal and ordered the matter to be retried. The case will now return to the lower court for fresh proceedings.
Benko, 49, has denied all allegations against him. He did not attend the appeal hearing and has maintained that he committed no wrongdoing.
Signa Collapse Under Wider Scrutiny
Benko was once regarded as one of Europe’s most influential real estate entrepreneurs. His Signa Group controlled or held stakes in landmark assets, including luxury hotels in Venice and Vienna, New York’s Chrysler Building, and premium department store chains such as Selfridges and Globus.
Signa’s financial crisis deepened in late 2023, eventually pushing the group into insolvency proceedings. The collapse has been described as the largest bankruptcy in Austrian history and caused losses for investors and financial institutions across several countries.
Authorities have launched multiple investigations into the company’s financial transactions, asset transfers and management decisions. Legal and financial experts said the ruling reinforces the importance of creditor protection and corporate accountability during insolvency proceedings.
