New Delhi [India], February 25 (HBTV): In a significant development, the Directorate of Enforcement (ED) has successfully reinstated attached properties worth approximately INR 3,339 crore (at the time of attachment) to the victims of the Agri Gold Ponzi scheme. The current market value of these assets is estimated to be over INR 6,000 crore.
This restitution marks a major step in ED's efforts to return the Proceeds of Crime (POC) to rightful claimants and provide relief to those affected.
Making the announcement on Monday, ED stated that it had filed a restitution application under the Prevention of Money Laundering Act (PMLA), 2002, before the special court in Hyderabad. The application sought the release of movable and immovable properties attached by ED to the Crime Investigation Department (CID), Andhra Pradesh, for restitution under the provisions of the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act, 1999.
The court, in an order dated February 21, 2025, allowed the restitution petition filed by ED, thereby paving the way for the restoration of the attached assets to the victims.
The assets for which restitution has been allowed include more than 2,300 parcels of agricultural land, residential and commercial plots, apartments, and an amusement park named Haailand in Chinnakakani, Guntur district, Andhra Pradesh. Out of the total 2,310 attached immovable properties, 2,254 are in Andhra Pradesh, 43 in Telangana, 11 in Karnataka, and two in Odisha.
ED initiated the investigation against Agri Gold group of companies in 2018 based on multiple First Information Reports (FIRs) registered in Andhra Pradesh, Telangana, Karnataka, Odisha, and the Andaman and Nicobar Islands. The group had collected deposits from around 19 lakh customers and 32 lakh account holders under the pretext of real estate investments, promising high returns or residential plots.
ED's investigation revealed that Agri Gold Group operated a fraudulent collective investment scheme under the guise of real estate business, floating over 130 companies. These companies collected deposits as ‘advances for plots’ from investors, despite lacking sufficient land to fulfill commitments.
By following this model, the accused lured lakhs of people into investing. ED found that the funds collected were diverted to various industries, including power, dairy, entertainment, healthcare (Ayurvedic), and farmland ventures, without investors' knowledge. The company eventually defaulted on returning deposits, either in cash or kind. Thousands of commission agents were engaged to attract investors, and the scheme amassed approximately INR 6,380 crore from more than 32 lakh investor accounts.
During the course of the PMLA investigation, ED attached movable and immovable properties across multiple states, valued at approximately INR 4,141.2 crore. The agency also arrested Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, and Avva Hema Sundara Vara Prasad in December 2020. A prosecution complaint was filed before the special PMLA court in Hyderabad against 14 accused persons and entities in February 2021.
The court took cognizance of the money laundering charges against all accused on August 29, 2023. A supplementary prosecution complaint was filed on March 28, 2024, against 22 additional accused, and the court took cognizance of this complaint on November 4, 2024.
(ANI)