The FIRs were registered on the basis of numerous complaints from depositors against the Agri Gold group of companies which had collected deposits from around 19 Lakh customers and 32 Lakh account holders in the name of real estate investment with a promise of high returns or a residential plot
FinTech BizNews Service
Mumbai, 7 November, 2024: Directorate of Enforcement (ED), Hyderabad Zonal Office has filed a Supplementary Prosecution Complaint (PC) in the case of Agri Gold Group of companies against M/s Agri Gold Exims Limited, M/s Amruthavarshini Dairy Farms Private Limited, M/s Avvas Infotech Private Limited, M/s Mathaangi Infra Ventures Private Limited, M/s Shakti Timber Estates Private Limited, Avva Sita Rama Rao, Avva Venkata Subrahmanyeswara Sarma & M/s Sanctuary Homes Pvt. Ltd. under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 before the Hon’ble Special Court (PMLA ) of MSJ, Nampally, Hyderabad. The Hon’ble Court has taken cognizance of the PC on 06.11.2024.
ED initiated investigation on the basis of several FIRs registered by the Police authorities of several states including Andhra Pradesh, Telangana, Karnataka, Odisha and Andaman & Nicobar against the Agri Gold group of companies. These FIRs were registered on the basis of numerous complaints from depositors against the Agri Gold group of companies which had collected deposits from around 19 Lakh customers and 32 Lakh account holders in the name of real estate investment with a promise of high returns or a residential plot.
ED investigation revealed that Agri Gold Group ran fraudulent Collective Investment Scheme in the guise of 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 No., Survey Number 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 & other Directors lured lakhs of gullible persons and got deposits from them.
These funds were thereafter diverted to various industries like Power/Energy, Dairy, Entertainment, Health (Ayurvedic), Farm Land Ventures etc., 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 the Agri Gold group to lure people and they managed to collect Rs. 6380 Crore from more than 32 Lakh investor accounts.
During the course of investigation, properties worth Rs4141.33 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. Prosecution Complaint against 14 accused persons / entities including Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, Avva Hema Sundara Vara Prasad, M/s Agrigold Farm Estates India Pvt. Ltd. and Agri Gold Constructions Pvt. Ltd. was earlier filed before the Hon’ble Special Court (PMLA), Hyderabad in February 2021 and cognizance of the same was taken on 28.09.2023.