Directorate of Enforcement (ED), Hyderabad Zonal Office has successfully accomplished the process of
restitution of attached properties worth Rs. 611 Crore (approx.) (value of 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 impugned properties is expected to be more than Rs. 1000 Crore.
In May 2025, ED filed restitution application under Section 8(8) of the Prevention of Money Laundering
Act (PMLA), 2002 before the Hon’ble Special PMLA Court of the Hon’ble Metropolitan Sessions Judge,
Hyderabad for release of movable & immoveable properties attached by it to the Crime Investigation
Department (CID), Andhra Pradesh [insofar as such properties were also attached by A.P. 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 Hon’ble Court vide order dated 10.06.2025, has allowed the restitution petition filed by ED thereby
paving the way for restoration of attached assets to the victims. The attached assets for which restitution
has been allowed by the Hon’ble Court include 397 parcels of agricultural land, residential/commercial
plots and apartments. Out of the total 397 attached immovable properties, 380 are in the state of Andhra
Pradesh, 13 in Telangana and 4 in Karnataka.
ED 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.
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 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.
During the course of PMLA investigation, movable & immovable properties spread across various states
worth around Rs. 4141.2 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 & entities in February 2021. Cognizance of the offence of money laundering against all the
accused was taken by the Hon’ble Court on 29.08.2023. Subsequently, Supplementary Prosecution
Complaint was filed on 28.03.2024 against 22 accused and cognizance of the same has been taken by
the Hon’ble Court on 04.11.2024.
In the instant case, ED had earlier restituted properties worth Rs. 3339 Crore (present market value of
more than Rs. 6000 Crore) in the month of February 2025. The total value of properties restituted in this
case now stands at Rs. 3950 Crore (present market value of more than Rs. 7000 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