In a landmark step toward justice for millions of victims defrauded in the infamous Agri Gold Ponzi scheme, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has successfully restituted properties worth ₹3950 crore to affected depositors. The restitution, approved by the Special PMLA Court in Hyderabad, covers 397 immovable properties spread across Andhra Pradesh, Telangana, and Karnataka. The present market value of these restituted assets exceeds ₹7000 crore, reflecting one of the largest recoveries of proceeds of crime in India.
This move marks a significant milestone in the enforcement agency’s sustained pursuit of economic offenders and its mission to return misappropriated public funds to rightful victims.
Court Clears Way for Restitution Under PMLA and APPDFE Act
On 10 June 2025, the Special PMLA Court allowed a restitution application filed by ED in May under Section 8(8) of the Prevention of Money Laundering Act (PMLA), 2002. The application sought release of attached properties—also under attachment by the Andhra Pradesh CID—for restoration under the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act, 1999.
The assets cleared for restitution include 397 parcels of land, commercial and residential plots, and apartments, with 380 located in Andhra Pradesh, 13 in Telangana, and 4 in Karnataka. These properties were previously attached by ED as part of its investigation into one of India’s most notorious multi-state Ponzi schemes.
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Agri Gold Scam: Fraud Disguised as Real Estate Investment
The Agri Gold Group of Companies came under ED’s radar in 2018 after multiple FIRs were filed in Andhra Pradesh, Telangana, Karnataka, Odisha, and Andaman & Nicobar Islands. The group, spearheaded by Avva Venkata Rama Rao and others, had lured around 19 lakh customers and 32 lakh investor accounts, promising high returns or residential plots in exchange for advance deposits.
Investigations revealed that Agri Gold operated a fraudulent Collective Investment Scheme (CIS) masked as a real estate business. Over 130 shell companies were created to collect money under the pretense of plot bookings, with no actual land holdings to fulfill the commitments. The funds, once collected, were diverted to unrelated sectors—power, dairy, entertainment, health (Ayurveda), and farming ventures—without the investors’ knowledge or consent.
To scale this deception, Agri Gold enlisted thousands of commission agents who targeted lower-income groups, eventually amassing a colossal ₹6380 crore.
Arrests, Attachments, and Legal Milestones
During the PMLA probe, the ED attached movable and immovable assets worth ₹4141.2 crore. In December 2020, ED arrested Avva Venkata Rama Rao, Avva Venkata Seshu Narayana Rao, and Avva Hema Sundara Vara Prasad. A Prosecution Complaint was filed in February 2021 against 14 accused entities, followed by a Supplementary Complaint in March 2024 naming 22 more individuals. The court took cognizance of these complaints in August 2023 and November 2024, respectively.
In February 2025, ED had already restituted ₹3339 crore worth of properties (now valued at ₹6000+ crore). With this latest installment, the total value of restituted assets rises to ₹3950 crore, exceeding ₹7000 crore in market value.
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A Watershed in Economic Justice
This case stands as a defining example of how enforcement actions can deliver tangible relief to victims of large-scale financial fraud. The successful restitution reinforces the role of the PMLA and the APPDFE Act as effective legislative tools to dismantle Ponzi ecosystems and recover proceeds of crime.
“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,” the agency stated.
As ED continues to trace and recover siphoned assets across states, the Agri Gold case may serve as a benchmark for future financial fraud investigations involving mass public deception.