ED Recovers Agri Gold Assets Valued at Rs 3,339 Crore for Ponzi Scheme Victims

Hyderabad, Feb 24 (NationPress) The Enforcement Directorate's Hyderabad Zonal Office has effectively completed the restitution of attached assets worth approximately Rs 3,339 crore to those affected by the Ponzi schemes orchestrated by the Agri Gold group of companies.

The asset valuation at the time of attachment was around Rs 3,339 crore, but the current market value is anticipated to exceed Rs 6,000 crore, according to a statement from the ED on Monday.

This restitution effort signifies a crucial advancement in the ED’s mission to return assets to their rightful owners and to ensure that the Proceeds of Crime (POC) are remitted to those impacted, as stated by the central agency.

In December 2024, the ED submitted a restitution request under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002 to the special PMLA court of the Metropolitan Sessions Judge in Hyderabad. This petition sought the release of both movable and immovable properties that had been attached to the Crime Investigation Department (CID), Andhra Pradesh, to facilitate their return to the victims of the Agri Gold Ponzi schemes in accordance with the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act, 1999.

The court's ruling on February 21 approved the ED’s restitution application, thereby enabling the restoration of attached assets to the victims. The properties earmarked for restitution comprise over 2,300 parcels of agricultural land, residential and commercial plots, apartments, and an amusement park named ‘Haailand’ located in Chinnakakani, Guntur district, Andhra Pradesh.

Of the total 2,310 attached immovable properties, 2,254 are situated in Andhra Pradesh, 43 in Telangana, 11 in Karnataka, and 2 in Odisha.

The ED commenced its investigations into the Agri Gold group in 2018 following multiple FIRs filed in Andhra Pradesh, Telangana, Karnataka, Odisha, and Andaman & Nicobar. The Agri Gold group had raised deposits from approximately 19 lakh customers and 32 lakh account holders under the guise of real estate investment, promising high returns or a residential plot.

The investigation unveiled that the Agri Gold Group operated a fraudulent Collective Investment Scheme disguised as a real estate business, which involved establishing over 130 companies. These companies solicited deposits as ‘advances for plots’ from investors without having corresponding land available.

“By following this business model, the accused deceived numerous unsuspecting individuals and amassed deposits from them. These funds were subsequently redirected to various sectors including power and energy, dairy, entertainment, health (Ayurvedic), and agricultural ventures without depositors’ awareness, leading to defaults in returning deposits either in cash or kind as promised. Thousands of commission agents were recruited by the Agri Gold group to attract investors, managing to collect around Rs 6,380 crore from over 32 lakh investor accounts,” the ED reported.

Throughout the PMLA investigation, assets valued at approximately Rs 4,141.2 crore across various states were attached by the ED. The agency also apprehended Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, and Avva Hema Sundara Vara Prasad in December 2020, filing a prosecution complaint against 14 accused persons and entities in February 2021 before the Special PMLA Court in Hyderabad.

The court acknowledged the money laundering offenses against all accused on August 29, 2023. Following this, a supplementary prosecution complaint was filed on March 28, 2024, against 22 accused, with the court taking cognizance on November 4, 2024.