HYDERABAD: The Enforcement Directorate Hyderabad Zonal Unit has accomplished the process of restitution of attached properties worth `611 crore (value of the properties at the time of attachment) to the victims of Ponzi schemes launched by Agri Gold group of companies.
The present market value of the properties is expected to be more than Rs 1,000 crore.
In May 2025, the ED filed restitution application under Section 8(8) of the Prevention of Money Laundering Act, 2002 before the Special PMLA Court of the Metropolitan Sessions Judge, Hyderabad for release of movable and immovable properties attached by it to the Crime Investigation Department, Andhra Pradesh.
The ED filed the petition so that attached properties could be restored to the victims of the Agri Gold Ponzi schemes under the provisions of the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act, 1999. The Court vide, in its order dated 10.06.2025, allowed the restitution petition filed by ED.
The attached assets for which restitution has been allowed by the court include 397 parcels of agricultural land, residential/commercial plots and apartments. Of the total 397 attached immovable properties, 380 are in the state of Andhra Pradesh, 13 in Telangana and 4 in Karnataka.
The agency initiated investigation against M/s Agri Gold group of companies in 2018 on the basis of several FIRs registered in Andhra Pradesh, Telangana, Karnataka, Odisha and Andaman & Nicobar.
Agri Gold group of companies had 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.
The ED investigation revealed that Agri Gold group ran fraudulent Collective Investment 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.
By adhering to this business module, the accused lured lakhs of gullible persons and got deposits from them. These funds were thereafter diverted to various industries like power/energy, dairy, entertainment, health (ayurvedic), farm land ventures etc., without the knowledge of the depositors and the companies defaulted on returning the deposits either in cash or in kind as agreed upon.
The agency stated that thousands of commission agents were engaged by the firm to lure people and they managed to collect around Rs 6,380 crore from more than 32 lakh investor accounts. During the course of PMLA investigation, movable and immovable properties spread across various states worth around Rs 4,141.2 crore were attached by ED.
ED had also arrested Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao and Avva Hema Sundara Vara Prasad in December 2020 and filed prosecution complaint before the Special PMLA Court, Nampally, Hyderabad against 14 accused persons and entities in February 2021.
Cognizance of the offence of money laundering against all the accused was taken by the court on August 29, 2023. Subsequently, a supplementary prosecution complaint was filed on March 28, 2024 against 22 accused and cognizance of the same was taken by the court on November 4, 2024.
In the instant case, ED had earlier restituted properties worth Rs 3,339 crore (present market value of more than Rs 6,000 crore) in February 2025. The total value of properties restituted in this case now stands at Rs 3,950 crore (present market value of more than 7,000 crore).
This restitution exercise marks a significant step in ED’s efforts to restore properties to their rightful claimants and to ensure that proceeds of crime are returned to those affected.