The Enforcement Directorate (ED) has arrested three promoters of a South India-based company. Agri Gold, this chit fund company, allegedly defrauded millions of investors of around 6380 crore through a Ponzi scheme.
The three promoters arrested by the ED are A. Venkata Ramarao, A. Venkata S. Narayana Rao, and A. Hema Sundara Vara Prasad. According to the Enforcement Directorate, these individuals are the main culprits and were arrested due to their involvement in money laundering.
They were arrested on Tuesday under various sections of the Prevention of Money Laundering Act (PMLA) and have been remanded to 14 days of judicial custody by a special court in Hyderabad.
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Raids Conducted at Multiple Locations
The ED raided multiple locations in Vijayawada and Hyderabad, including those of the three promoters and the company auditor, seizing approximately 22 lakh in cash, property documents, and digital devices.
Several FIRs have been registered against these accused in Andhra Pradesh, Telangana, and Karnataka. They have been accused of defrauding 32 lakh investors out of 6380 crore rupees, leaving the investors feeling cheated.
How the Fraud Was Committed
People from Odisha, Tamil Nadu, Maharashtra, Andaman and Nicobar, and Chhattisgarh invested in the company's Ponzi scheme. According to the ED, 'The mastermind of this scam is A. Venkata Ramarao, who orchestrated it through the Agri Gold Group of Companies. He had initially worked for the Golden Forest Collective Investment Scheme, where he learned the tactics of such fraudulent schemes. He meticulously planned and executed the conspiracy.'
The ED revealed that he, along with his seven brothers and associates, established more than 150 companies and began collecting money from the public. They lured people with attractive offers that promised plots of land, agricultural land, or high returns upon maturity.
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Source: aajtak
