Hyderabad: The Enforcement Directorate (ED) of the Hyderabad zonal office has filed a Supplementary Prosecution Complaint (PC) in the case of Agri Gold Group of companies for allegedly floating a fraudulent investment scheme in the guise of real estate business.
The complaint named many firms and individuals including Agri Gold Exims, Amruthavarshini Dairy Farms, Avvas Infotech, Mathaangi Infra Ventures, Shakti Timber Estates, Avva Sita Rama Rao, Avva Venkata Subrahmanyeswara Sarma and Sanctuary Homes under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 before the Special Court (PMLA ) of MSJ, Nampally.
The Enforcement Directorate (ED) has launched an investigation following multiple First Information Reports (FIRs) filed against the Agri Gold group of companies.
These complaints originated from numerous depositors who reported that the company had collected deposits from approximately 1.9 million customers and 3.2 million account holders. Agri Gold promised high returns or residential plots in exchange for real estate investments. The complaints were made to the police by several states, including Andhra Pradesh, Telangana, Karnataka, Odisha, and the Andaman and Nicobar Islands.
Over 130 companies involved
During the investigation, ED noted that Agri Gold Group ran a fraudulent collective investment scheme in the guise of a real estate business, for which more than 130 companies were floated.
These companies used to collect deposits as ‘advances for plots’ from depositors, without commensurate land being available with the company, without specifying the plot numbers, survey numbers and location of the land and also by reserving rights to offer plots in any other venture if plots in the offered venture are not available. It was further advertised that in case the customer is not interested in buying plots offered by Agri Gold Group, full money would be refunded with some bonus.
By adhering to this business module, the Agri Gold Group led by Avva Venkata Rama Rao and other directors lured lakhs of individuals and got deposits from them.
These funds were thereafter diverted to various industries like power/energy, dairy, entertainment, health (ayurvedic), and farmland ventures among other things without the knowledge of the depositors and the companies defaulted in returning the deposits either in cash or in kind as agreed upon.
Thousands of commission agents were engaged by Agri Gold.
The group lured people and they managed to collect Rs. 6380 Crore from more than 32 Lakh investor accounts, the ED alleged.
During the investigation, properties worth Rs. 4141.33 crore were attached by ED. Further, Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao and Avva Hema Sundara Vara Prasad were arrested in December 2020.
A prosecution complaint against 14 accused persons/entities including Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, Avva Hema Sundara Vara Prasad, Agrigold Farm Estates and Agri Gold Constructions was earlier filed before the Special Court (PMLA), Hyderabad in February 2021 and cognizance of the same was taken on 28 September 2023.
