Lakhs of people have lost valuable property and a lifetime’s earnings by investing in Ponzi schemes in Andhra Pradesh in the last few years. Many victims are senior citizens, who had invested their retirement benefits in these schemes.
The Andhra Pradesh Crime Investigation Department (CID) officials investigating these scams have identified more than 50 lakh depositors who had invested nearly Rs. 8,500 crore in different firms floated by fraudsters.
The CID has registered cases against several such spurious enterprises — Bommarillu Farms and Villas Pvt. Ltd., Gold Quest Net India Enterprises, Agrigold Group of Industries, VR Chits, SIMS, Avani Gold Farms and Estates Pvt. Ltd., Keshava Reddy School, N Mart Retails Ltd., Akshaya Gold Farms and Villas India Ltd., Abhaya Gold Infratech India Ltd. and Siri Gold Farms and Estates Pvt. Ltd. are some of them.
Left in the lurch The managements of these outfits collected deposits from gullible customers with the promise of good returns from investments in real estate, gold, construction, land development, villas, consumer products, monthly circulation schemes, fixed deposits and entertainment projects in different States.
But after collecting huge amounts from a large number of people, they closed their offices suddenly, leaving thousands of depositors in the lurch. So far, about 10 suicides are estimated to be attributable to the loss of hard-earned money, gold and land.
The fraudulent companies recruited over 50,000 employees as agents, supervisors, team leaders, office executives and other resource people to promote these schemes. Upon the closure of the firms, they have been left to face the wrath of the depositors.
Major fraud “Agrigold is the biggest fraud case being investigated by the CID in the State. As many as 32 lakh depositors invested about Rs. 6,380 crore, of which 19.52 lakh depositors were identified in A.P. The police have seized many properties belonging to the company and arrested five persons, including the chairman,” said CID Additional Director General Ch. Dwaraka Tirumala Rao.
Cases have been registered under the Andhra Pradesh Protection of Depositors of Financial Establishments (APPDFE) Act 1999, the Prize Chits and Money Circulation Schemes (Banning) Act 1978, as well as under cheating and other sections of the IPC.
“About 137 cases are under investigation, 154 cases are pending trial and 65 cases are under inquiry. The CID has attached properties worth several crores of rupees belonging to the firms. Abhaya Gold duped 3.99 lakh customers, N-Mart cheated 2.26 lakh people, about 10.11 lakh customers were duped by Akshaya Gold, and the Siri Gold management duped 45,000 people,” Mr. Rao said.
Taking the hit “The Agrigold management sold more than 20 products and we invested lakhs of rupees. Now, we are not in a position to pay even for our children’s education,” said Mr. E.V.Naidu of Vizianagaram district, a victim of Agrigold’s schemes.
Mr. Viswanatha Reddy, an erstwhile Agrigold agent from Kallur village, recounted how he collected deposits from thousands of customers for Agrigold, and bemoaned, “Now, the customers are chasing me for their money. I lost my job and my reputation in my family. I am leading a pathetic life.”
