HYDERABAD: Officials from the Enforcement Directorate (ED), Hyderabad officials, who filed a supplementary charge sheet against Agri Gold group of companies under PMLA, have found that the group’s management had floated 130 companies to divert funds. During the investigation, the ED attached properties worth Rs 4141.33 crore. The supplementary prosecution complaint (PC) mentions the names of Agri Gold Exims Ltd, Amruthavarshini Dairy Farms, Avvas Infotech, Mathaangi Infra Ventures, Shakti Timber Estates, Avva Sita Rama Rao, Avva Venkata Subrahmanyeswara Sarma and Sanctuary Homes Pvt. Ltd., under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 before the Special Court (PMLA) of MSJ, Nampally. It was revealed that Agri Gold group ran a fraudulent collective investment scheme under 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, without specifying the plot and survey numbers and location of the land and also by reserving rights to offer plots in any other venture if plots in the offered venture were not available. It was further advertised that in case the customer is not interested in buying plots offered by the group, the entire money would be refunded with some bonus.By adhering to this business module, Agri Gold group, led by Avva Venkata Rama Rao and other directors, lured lakhs of gullible persons from whom they secured deposits. These funds were thereafter diverted to various industries like power and energy, dairy, entertainment, health (ayurvedic) and farm land Ventures without the knowledge of the depositors. The companies defaulted in returning the deposits either in cash or in kind as agreed upon. Thousands of commission agents were engaged by the group to lure people. Over all, they amassed Rs 6,380 crore from over 32 lakh investor accounts. Venkata Rama Rao, Avva Venkata Seshu Narayana Rao and Avva Hema Sundara Vara Prasad were arrested in December 2020. Prosecution complaints were filed before the special court (PMLA), Hyderabad in February 2021 against the three and also against Agrigold farm estates India and Agri Gold constructions.
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