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NDTV
2 days ago
- Business
- NDTV
Probe Agency ED Restores Assets Worth Rs 611 Crore To Ponzi Scam Victims
New Delhi: In a breakthrough in the Agri Gold Ponzi scheme case, the Hyderabad zonal office of the Enforcement Directorate (ED) has successfully restituted attached properties worth approximately Rs 611 crore (at the time of attachment) to the victims of the scam. The present market value of these properties is estimated to be over Rs 1,000 crore. The move follows an application filed by the ED in May under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002, before the Special PMLA court of the Hyderabad metropolitan sessions judge. The application sought release of attached properties to the Andhra Pradesh Crime Investigation Department (CID), enabling their return to the victims under the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act, 1999. On June 10, the court approved the restitution petition, paving the way for restoration of 397 attached properties - comprising agricultural land, residential and commercial plots, and apartments. Of these, 380 properties are in Andhra Pradesh, 13 in Telangana, and four in Karnataka. The ED's investigation into the Agri Gold Group began in 2018 based on multiple first information reports (FIRs) filed across Andhra Pradesh, Telangana, Karnataka, Odisha, and Andaman and Nicobar Islands. The group duped nearly 19 lakh customers and maintained over 32 lakh investor accounts by promising high returns and residential plots through a fraudulent collective investment scheme. The probe revealed that more than 130 shell companies were floated to collect advances for plots - without owning sufficient land - and the funds were diverted to sectors like power, dairy, entertainment, ayurveda, and farmland ventures. Over Rs 6,380 crore was collected through this scam, with the help of thousands of commission agents. During the PMLA investigation, the ED attached properties worth Rs 4,141.2 crore spread across several states. The key accused Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, and Avva Hema Sundara Vara Prasad were arrested in December 2020. A prosecution complaint was filed against 14 accused in February 2021, and a supplementary complaint against 22 accused followed in March 2024. Earlier in February, the ED restituted properties valued at Rs 3,339 crore (market value over Rs 6,000 crore). With the latest order, the total value of restituted properties in the Agri Gold case now stands at Rs 3,950 crore with a current market value exceeding Rs 7,000 crore. This restitution marks a crucial step in returning the proceeds of crime to the rightful victims and demonstrates the ED's commitment to securing justice for those defrauded by financial scams, officials said.
India Gazette
2 days ago
- Business
- India Gazette
ED restitutes Rs 611-cr to victims of Ponzi schemes launched by Agri Gold group
New Delhi [India], June 13 (ANI): The Enforcement Directorate (ED) has restituted the attached properties worth Rs 611 crore (value of properties at the time of attachment) to the victims of Ponzi schemes launched by Agri Gold group of companies, the agency said on Friday. ED's Hyderabad Zonal Office successfully accomplished the process of restitution of the property. The present market value of the impugned properties is expected to be more than Rs 1,000 crore. In May 2025, ED filed restitution application under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002 before Special PMLA Court Hyderabad for release of movable and immoveable properties attached by it to the Crime Investigation Department (CID), Andhra Pradesh [in so far as such properties were also attached by Andhra Pradesh CID] so that such 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 order dated June 10, 2025, has allowed the restitution petition filed by ED thereby paving the way for the restoration of attached assets to the victims. The attached assets for which restitution has been allowed by the court include 397 parcels of agricultural land, residential and commercial plots and apartments. Out of the total 397 attached immovable properties, 380 are in the state of Andhra Pradesh, 13 in Telangana and four in Karnataka. ED initiated an investigation against the Agri Gold group of companies in 2018 on the basis of several First Information Reports registered in Andhra Pradesh, Telangana, Karnataka, Odisha and Andaman and Nicobar. The 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. ED investigation revealed that 'Agri Gold Group ran a fraudulent Collective Investment Scheme in the guise of a 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,' said the ED in a statement. '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 in returning the deposits either in cash or in kind as agreed upon.' Thousands of commission agents were engaged by the Agri Gold group to lure people, and they managed to collect around Rs 6380 crore from more than 32 lakh investor accounts, it further said. During the course of the PMLA investigation, movable and immovable properties spread across various states worth around Rs 4,141.2 crore were attached by the ED. The ED had also arrested Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao and Avva Hema Sundara Vara Prasad in December 2020 and filed a Prosecution Complaint before the Special PMLA Court, Nampally, Hyderabad against 14 accused persons and entities in February 2021. Cognisance of the offence of money laundering against all the accused was taken by the court on August 29, 2023. Subsequently, Supplementary Prosecution Complaint was filed on March 28, 2024 against 22 accused, and cognisance 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 the month of February 2025. The total value of properties restituted in this case now stands at Rs 3,950 crore (present market value of more than Rs 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. (ANI)
