Probe Agency ED Restores Assets Worth Rs 611 Crore To Ponzi Scam Victims

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.