The ED has hooked up homes really worth Rs 4,109 crore distribute across different states in a cash-laundering situation linked to an alleged Ponzi plan, the company stated on Thursday. The situation pertains to the Agri Gold Team of Organizations. A few promoters of the group were being arrested by the central company on Tuesday.
“The connected assets include 2,809 landed houses, Haail and Amusement Park in the title of Arka Leisure and Entertainments Personal Restricted in Andhra Pradesh (spread over 48 acres) and shares of many companies, crops and machinery,” the Enforcement Directorate (ED) said in a assertion on Thursday. The belongings hooked up provisionally beneath the Prevention of Dollars Laundering Act (PMLA) are situated in Andhra Pradesh, Karnataka, Odisha, Tamil Nadu and Telangana.
The accused can appeal towards the ED order in advance of the Adjudicating Authority of the PMLA within six months. The ED initiated a probe into the subject after going via various law enforcement FIRs filed towards the accused in Andhra Pradesh, Telangana and Karnataka for allegedly duping in excess of 32 lakh investors immediately after cash worth Rs 6,380 crore had been collected from them.
The “major accused” are Avva Venkata Rama Rao, Avva Venkata S Narayana Rao and Avva Hema Sundara Vara Prasad — the promoters of the Agri Gold Group of Firms who have been arrested by the ED. The agency initiated the probe from the accused right after going via different police FIRs filed from them in Andhra Pradesh, Telangana and Karnataka.
Buyers from Odisha, Tamil Nadu, Maharashtra, the Andaman and Nicobar Islands and Chhattisgarh ended up also duped by way of the Ponzi plan, it experienced explained. “The fraud was perpetrated by Avva Venkata Rama Rao by way of the Agri Gold Group of Companies. He experienced earlier worked in the Golden Forest CIS (collective investment decision plan) fraud and possessing learnt the tips of the trade in that scheme, had hatched a nicely-planned conspiracy.
“He, alongside with his 7 brothers and associates, established up extra than 150 organizations and commenced accumulating deposits from the standard public with a assure of giving designed plots/farm lands or withdrawal at a substantial fee of return on maturity/pre-time period,” the company had claimed. It alleged that the accused “engaged” thousands of fee agents to lure people today with many schemes for a hefty commission and managed to collect Rs 6,380 crore from a overall of 32,02,628 investor accounts.
“In the conclusion, the gullible traders neither obtained plots nor could get well their deposits. The team collected deposits illegally from across the region,” the ED alleged. The agency reported the Agri Gold Team of Organizations “did not get hold of authorization from the RBI to obtain these kinds of deposits”.
“The SEBI has described that the small business of the Agri Gold Farm Estates India Non-public Limited (a team enterprise) was very little but a CIS and requested the business to cease having more deposits and return the money to the depositors. “Instead of complying with the directions of the SEBI in letter and spirit, accused Avva Venkata Rama Rao opened new organizations and started out accumulating deposits in the names of the new companies on the pretext of serious estate enterprise with the assistance of an army of commission agents,” it alleged.
The ED mentioned its probe located that the accused “by no means formulated lands adequate to give plots to all the buyers”. It had explained Avva Venkata Rama Rao and his relatives went on a “siphoning spree”, illegally diverted the community deposits and invested in myriad verticals and private providers, which were being instantly owned by their spouse and children.
The company experienced mentioned the accused “also established up organizations overseas” and diverted massive quantities of funds to offshore entities.