Vijayawada: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has completed the process of restituting attached properties, valued at approximately Rs 611 crore (at the time of attachment), to the victims of Ponzi schemes orchestrated by the AgriGold group of companies. The current market value of these properties is estimated to exceed Rs 1,000 crore.
In a significant development, the ED filed a restitution application in May 2025 under Prevention of Money Laundering Act (PMLA), 2002, before the Special PMLA Court of the Metropolitan Sessions Judge, Hyderabad.
The application sought the release of attached movable and immovable properties to the AP CID (where properties were also attached by AP CID), for their restoration to AgriGold Ponzi scheme victims under the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act.
On June 10, 2025, the court approved the ED’s restitution petition, paving the way for the return of these attached assets to the victims. The properties for which restitution has been allowed include 397 parcels of agricultural land, residential/commercial plots, and apartments. Of these, 380 properties are located in Andhra Pradesh, 13 in Telangana and four in Karnataka.
The ED initiated its investigation into AgriGold Group of companies in 2018, based on multiple FIRs. The AgriGold Group had purportedly collected deposits from approximately 19 lakh customers and 32 lakh account holders.
ED’s investigation uncovered that the AgriGold Group operated a fraudulent Collective Investment Scheme disguised as a real estate business, for which over 130 shell companies were floated. These entities collected deposits as “advances for plots” from unsuspecting depositors, despite not possessing commensurate land.
Through this deceptive model, the accused lured millions of gullible individuals, accumulating vast deposits. These funds were subsequently diverted to various unrelated industries, including Power/Energy, Dairy, Entertainment, Health (Ayurvedic), and Farm Land Ventures, without the knowledge of depositors. The companies ultimately defaulted on their commitments to return deposits, either in cash or kind.
Thousands of commission agents were employed by the AgriGold Group to entice investors, successfully collecting around Rs 6,380 crore from over 32 lakh investor accounts.
During the PMLA investigation, the ED attached movable and immovable properties across various States, totaling approximately Rs 4,141.2 crore. The ED also arrested Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao and Avva Hema Sundara Vara Prasad in December 2020. A prosecution complaint was subsequently filed against 14 accused persons and entities in February 2021.
The court took cognizance of the money laundering offensc against all accused on August 29, 2023. A Supplementary Prosecution Complaint was filed on March 28, 2024, against 22 additional accused, with cognizance taken by the court on November 4, 2024.
Earlier, in February 2025, the ED had restituted properties worth Rs 3,339 crore (with a present market value exceeding Rs 6,000 crore) in this case. With the latest restitution, the total value of properties returned to victims now stands at Rs 3,950 crore, with a present market value exceeding Rs 7,000 crore.
This restitution exercise marks a significant achievement in the ED’s ongoing efforts to restore properties to their rightful claimants and ensure that proceeds of crime are returned to those who have been defrauded.
