Aside from online trading, did you know that there are other strategies to grow your capital and secure your wealth?
One investment strategy is buying, holding, and selling real estate properties once their market value significantly increases. As these properties are inherently necessary for our lives, participating in this market presents lucrative and sustainable opportunities.
But do it right – and ensure you’re investing your money on a reputable platform.
Due to its benefits and opportunities, investment scam like Agri Gold thrive in this market due to the enthusiasm and desperation of the public to grow their wealth.
By activating thousands of agents to promote and defraud 1.9 million customers (19 lakh) of investment worth over Rs 60 billion (6000 crore), Agri Gold was viewed as one of the largest Indian Ponzi schemes. In this TRU Insight, we’ll look at the development of the Agri Gold Ponzi scheme and the effort of the Enforcement Directorate (ED) to restore the losses of investment scam victims.
Agri Gold Ponzi Scheme in a Glance
Starting from its launch, Agri Gold won the hearts and trust of Indian investors by promising a high-yielding residential plot in high-valued areas.
It was found by the Enforcement of Directorates that Agri Gold was a collective investment scheme disguised as real estate companies. This Ponzi scheme was promoted by thousands of promoters – ultimately defrauding 19 lakh customers (1 lakh=100,000 units) of around Rs 3,339 crore (1 crore=10,000,000 units).
According to the ED, the asset attached to the scheme now has a market value of Rs 6,000 crore (Rs 60 billion).
As the Indian high court urged the authorities to serve justice to the victims, the ED will use the attached assets to restore the losses of the victims. This effort is in accordance with the Andhra Pradesh Protection of Depositors of Financial Establishment Act of 1999.
What Happened to the Agri Gold Ponzi Scheme?
With its promise of high-yielding residential plots, this real-estate investment fraud attracted over 1.9 million unsuspecting investors and defrauded over Rs 3,339 crore (Rs 33.39 billion). Today, the defrauded amount is valued at around Rs 60 billion (Rs 6000 crore)
This real state Ponzi scheme activated thousands of promoters to recruit unsuspecting investors into the scheme. Moreover, around 130 floating companies solicited deposits from the victims for the promised residential plot.
In 2018, the Hyderabad office of the Enforcement Directorate (ED) started to investigate the Agri Gold investment as it seems to violate the Prevention of Money Laundering Act (PMLA). This fraud investment probe followed the multiple first information reports (FIRs) from investors registered across Andhra Pradesh, Telangana, Karnataka, Odisha and the Andaman & Nicobar Islands
It’s found by the ED that this Ponzi scheme comprised multiple real estate-disguised companies, including:
- AgriGold Exims Limited
- Amruthavarshini Dairy Farms Private Limited
- Avvas Infotech Private Limited
- Mathaangi Infra Ventures Private Limited.
Essentially, the fraud process is as follows – the pseudo-real estate companies will collect deposits (advance for the plot) among customers who are interested in securing a residential plot.
The depositor will then pay as required, only to find that there’s no commensurate land to begin with. Instead, the defrauded deposits go to the operators’ and promoters’ pockets.
Who Are the Operators of the Agri Gold Ponzi Scheme?
The high court ruled that Avva Venkata Rama Rao was the main operator (director) of this real estate Ponzi scheme. Together with Rama are Avva Venkata Seshu Narayana Rao and Avva Hema Sundara Vara Prasad.
These three – suspected of being the scheme’s key figures – were arrested in December 2020.
Enforcement of Directorate to Sell Seized Rs 6000 Crore Agri Gold Asset
The ED has been actively involved in addressing the Agri Gold Ponzi scheme, which defrauded numerous investors by promising high returns on real estate investments.
The probe on the by-then suspected scam operation of Agri Gold started due to a series of reports and claims against the investment platform. During the investigation, the ED attached movable and immovable properties worth around thousands of crores.
The ED has seized assets worth over Rs 6,000 crore, including:
- Agricultural land
- Residential plots
- Commercial plots
- Apartment complexes
- Amusement parks
According to the ED, these assets have an accumulated worth of Rs 3,339 crore (Rs 33.39 billion) at the time of attachment. Now, the assets are worth over Rs 6,000 crore (Rs 60 billion).
In December 2024 – six years after the initial investigation against the Agri Gold group of companies – the ED filed a restitution application. By selling the seized assets of Agri Gold, the ED can restore the losses of Agri Gold victims. This restitution application complies with the Prevention of Money Laundering Act (PMLA) Section 8(8) and the 1999 Financial Establishments Act’s Andhra Pradesh Protection of Depositors.
ED to Restitute Asset Losses to Victims
Under Section 8(8) of the Prevention of Money Laundering Act (PMLA) and the Andhra Pradesh Protection of Depositors of Financial Establishment Act of 1999, the special court is mandated to release the attached properties to restore the losses of the victims.
On February 21, 2025, the high court allowed the ED to restitute or restore the fraudulently acquired assets to the victims.
This decision enables the victims to reclaim their assets, marking a significant step in addressing the financial losses suffered by them
