Daijiworld Media Network – Hyderabad
Hyderabad, Feb 24: In a major breakthrough, the Enforcement Directorate (ED) Hyderabad Zonal Office has successfully restored properties worth over ?6,000 crore to victims of the Agri Gold Ponzi scheme. The assets, originally valued at ?3,339 crore at the time of attachment, have significantly appreciated in market value. The ED described the restitution as a crucial step in ensuring justice for thousands of investors defrauded by the Agri Gold group. The restoration was made possible after the Special PMLA Court in Hyderabad granted approval on February 21, allowing the transfer of attached properties to the Andhra Pradesh Crime Investigation Department (CID) under the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act, 1999.
The recovered assets include over 2,300 parcels of agricultural land, residential and commercial plots, apartments, and the amusement park ‘Haailand’ in Guntur, Andhra Pradesh. The majority of these properties—2,254 in total—are located in Andhra Pradesh, with additional assets in Telangana (43), Karnataka (11), and Odisha (2).
The ED launched its probe against the Agri Gold group in 2018 following multiple FIRs filed across Andhra Pradesh, Telangana, Karnataka, Odisha, and the Andaman & Nicobar Islands. Investigators uncovered a large-scale fraudulent scheme, where the company promised high returns on real estate investments to nearly 19 lakh depositors across 32 lakh accounts. Further findings revealed that the group operated an unauthorized Collective Investment Scheme, using over 130 shell companies to collect deposits under the pretext of land sales. However, the promised land holdings never existed, and funds were instead funneled into other industries, including power, dairy, entertainment, healthcare, and farmland ventures.
By deploying thousands of commission agents to attract investors, the Agri Gold group amassed a staggering ?6,380 crore. However, when the company defaulted on repayments, lakhs of depositors were left in financial ruin. The ED took decisive action by attaching movable and immovable properties worth ?4,141.2 crore across multiple states. In December 2020, key Agri Gold executives—Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, and Avva Hema Sundara Vara Prasad—were arrested. The agency subsequently filed a prosecution complaint against 14 individuals and entities in February 2021, with the court taking cognizance on August 29, 2023.
A supplementary prosecution complaint was filed on March 28, 2024, against 22 more accused, with the court recognizing the charges on November 4, 2024. The ED's successful restitution marks a critical victory for the victims of one of India’s biggest Ponzi scams, reinforcing the government’s commitment to cracking down on financial fraud and protecting investors.