Ponzi scam: ED files PC against Akshayagold Farms, Villas India; attach assets worth Rs. 268.24 Cr

Visakhapatnam: Enforcement Directorate (ED) has filed a prosecution complaint against Akshayagold Farms and Villas India Limited, their promoters/directors Bhogi Subramanyam, Devaki Harnath Babu, M Sudhakara Rao and others in a Ponzi scam.

The complaint was filed in Metropolitan Sessions Judge, Visakhapatnam under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The court has taken cognizance of the Prosecution Complaint.

ED initiated investigations on the basis of an FIR registered by Ongole I Town Police Station, under various sections of the Prize Chits & Money Circulation Scheme Act and Indian Penal Code for alleged cheating and defrauding lakhs of gullible public.

Multiple FIRs were registered by AP Police, Telangana Police, Karnataka Police, and CBI Odisha against s Akshayagold, its Directors, and others under various sections of IPC and other sections related to respective State Public Deposit Acts.

ED investigation revealed that Akshayagold cheated the public by collecting deposits without any permission from the RBI & SEBI. The accused collected funds from lakhs of gullible investors who were enticed by agents who were given handsome commissions to enroll new clients.

A hierarchy of agents was created in a pyramidal manner to earn high commissions. Investors were lured into investing their life savings by promising sites in advertised real estate ventures and offering high rates of return in various deposit schemes.

Earlier, ED had attached assets worth Rs. 268.24 Crore including 376 immovable properties in the form of agricultural lands, commercial plots, buildings, flats, etc. situated in Andhra Pradesh, Telangana & Maharashtra, and movable properties in the form of bank account balances, investments in shares, etc.

Further investigation is under progress.