ED attaches assets worth Rs. 110 cr of Maithri Plantation in Ponzi scheme case

Hyderabad: The Directorate of Enforcement (ED) has provisionally attached 210 immovable properties worth approximately Rs. 110 crores under the Prevention of Money Laundering Act (PMLA) 2002 in the Maithri Plantation & Horticulture Private Limited (MPHPL) Ponzi scam case.

The attached properties are in the name of MPHPL, its sister concerns Sree Nakshatra Builders & Developers India Private Limited (SNBDIPL) and Maithri Realtors India Private Limited (MRIPL), and the directors of these companies, including Lakku Konda Reddy, Lakku Malayadri Reddy, Lakku Madhava Reddy, and Kolikalapudi Brahma Reddy.

ED initiated a money-laundering investigation on the basis of an FIR dated 24 March 2013 registered by the Andhra Pradesh police under various sections of the IPC, Prize Chits Money Circulation Schemes (Banning) Act 1978, and APPDFE Act 1999 against Lakku Konda Reddy and others for allegedly cheating and defrauding the public. In total, 12 FIRs were registered by the Andhra Pradesh police.

The investigation by the ED revealed that MPHPL ran an illegal Ponzi scheme and solicited deposits from the public without permission and without any kind of license to run a Collective Investment Scheme or NBFC. It collected deposits from lakhs of depositors who were encouraged to join by a network of organised agents who were in turn promised very high commissions on the invested amounts. Investors were lured with the false promises of very high returns or delivery of a plot in dream projects on maturity.

The money trail revealed that the money collected from the public by MPHPL was illegally diverted to other group companies namely SNBDIPL & MRIPL for their real estate business and several properties were acquired in Andhra Pradesh, Telangana, Kerala, and Karnataka in the names of MPHPL, SNBDIPL, MRIPL, and the directors of these companies. The accused managed to collect Rs. 288.42 crores. As of date, out of the collected amount, MPHPL has failed to return nearly Rs. 158.14 crores to the investors.

ED has provisionally attached 196 landed properties in AP, 13 landed properties in Telangana, and one landed property in Karnataka. The properties include open lands, plots, and flats and are valued at Rs. 110 crores. Further investigation is in progress.