AP government rejects Essel-Zee group’s proposal to take over AgriGold

Even the petitioners — AP and Telangana AgriGold Customers and Agents Welfare Association — rejected the proposal.
Senior counsel P Sriraghuram, appearing for the Subhash Chandra Foundation, sought some time for filing affidavit.
Senior counsel P Sriraghuram, appearing for the Subhash Chandra Foundation, sought some time for filing affidavit.

HYDERABAD: In an another twist in the Agri Gold case, the State government on Tuesday refused to accept the proposal of the Subhash Chandra Foundation of Essel-Zee group to take over the properties of AgriGold, including those attached by the CID of both AP and Telangana, for `4,000 crore payable over a period of four and half years. The government said that it was difficult to trust the intervener (Subhash Chandra Foundation) which was seeking to step into the shoes of the State by the approval of the court on the promise of repaying all the depositors.

“If this proposal is accepted as it is or with modifications, if any, it will result in a situation where the State will reach a point of no return and will be dependent on the intervener having entered into an understanding and lapse, if any, will further complicate the issues and situation with the interest of the depositors taking a back seat,” the State government noted.

Even the petitioners — AP and Telangana AgriGold Customers and Agents Welfare Association — rejected the proposal. However, the All India Depositors and Agents Association said that the proposal was acceptable to it. In this regard, the State government and the petitioners filed affidavits before a division bench of Justice V Ramasubramanian and Justice SV Bhatt which is dealing with a batch petitions filed by AP and Telangana Agri Gold Customers (depositors) and Agents Welfare Association and others seeking CBI probe into the scam and refund of about `6,350 crore to 32 lakh depositors. 

After hearing both the sides, the bench granted another opportunity to the Subhash Chandra Foundation, directing it to make it clear by submitting details regarding the maximum amount it would pay for the properties and the time-frame required to fulfil them. A decision would be then taken whether to accept the proposal or not, the bench noted and posted the matter to September 17.

Special counsel of AP Krishna Prakash filed an affidavit saying that the intervener had estimated the present value of AgriGold assets at `1,600 cr on the lower side and `2,200 cr on the higher side with a further prediction of the same reaching the figure of `4,000 cr after four years, which cannot be accepted by the State government as projecting the true value of the properties as on date. 

Senior counsel P Sriraghuram, appearing for the Subhash Chandra Foundation, sought some time for filing affidavit. The Foundation was interested in taking over the properties of AgriGold and sought the government’s cooperation. 

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