HYDERABAD: The Hyderabad Zonal Office of the Enforcement Directorate has filed a supplementary prosecution complaint (PC) before a special court at Nampally in Hyderabad, against the Agri Gold Group of Companies under the provisions of the Prevention of Money Laundering Act-2002. The court took cognizance of the PC on Wednesday.
The agency initiated investigation against the subsidiaries of the group — Agri Gold Exims Ltd., Amruthavarshini Dairy Farms Pvt. Ltd., Avvas Infotech Pvt. Ltd., Mathangi Infra Ventures Pvt. Ltd., Shakti Timber Estates Pvt. Ltd., Avva Sita Rama Rao, Avva Venkata Subrahmanyeswara Sarma and Sanctuary Homes Pvt. Ltd. — on the basis of several FIRs registered by the police of several states including Andhra Pradesh, Telangana, Karnataka, Odisha and Andaman and Nicobar.
These FIRs were registered on the basis of numerous complaints that the group 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.
During the course of investigation, properties worth Rs 4,141.33 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.
An investigation revealed that the group ran a fraudulent 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. The group did not specify the survey numbers or even the location and reserved the right to offer plots in any other venture if land in the offered venture was 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 and other directors lured lakhs of gullible persons and got deposits from them.
These funds were thereafter diverted to various industries without the knowledge of the depositors and the companies defaulted in returning the deposits either in cash or in kind as agreed upon.