The Enforcement Directorate (ED) arrested the promoters of Agri Gold Group of Companies under the Prevention of Money-Laundering Act (PMLA) in a Rs 6,380 crore Ponzi scheme fraud case on Wednesday.
The Hyderabad PMLA court granted the accused — Chairman Avva Venkata Rama Rao, MD Avva Venkata Seshu Narayana Rao, VP Avva Hema Sundara Vara Prasad — 14 days of judicial custody.
ED conducted searches at their residences and seized cash, gold, and incriminating documents. The agency revealed that promoters had set up off-shore accounts and diverted funds to them.
United News of India reported that the accused had incorporated companies with infamous Mossack Fonsenca in the Cayman Islands. They also featured in the Paradise Leaks papers.
The paradise papers are a set of 13.4 million confidential documents leaked to German reporters that resulted in scandals and litigations across the world.
Multiple FIRs lodged in Andhra Pradesh, Telangana, and Karnataka revealed a multi-crore scam conceived by Avva Venkata Rama Rao through Agri Gold Group of Companies.
Per the ED officials, Rao conspired with his brothers and associates to set up more than 150 companies to collect deposits from the general public. He promised delivery of developed plots or farmlands or withdrawal at a high rate of return on maturity.
The company collected Rs 6,380 crore from 32,02,628 investors but investors did not get either their plots or money back.
The accused were arrested in March 2020 as well, and a PIL was filed in High Court for a speedy return of amounts invested in the scheme.
First Published: Dec 23, 2020 2:26 PM IST
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