Agrigold, an AP-based company is spreading its tentacles fast through the State of Andhra Pradesh. Its owner Mr V R Rao is a former employee of now extinct Golden Forest Ltd, which vanished with several hundreds of crores of public money with the promise of easy and quick money and now facing criminal cases. It never returned the deposits it collected from public with the promise of high returns. Its representatives then claimed that it has huge tracts of land all over India and there is no threat to their deposits with the company. They never revealed that the company has no permission from the Reserve Bank of India to collect deposits from public.
Now, Golden Forest's employee is enacting the same drama and collecting deposits from public. The promise is same. The company owns several hundreds of acres and if necessary it would be sold to repay the depositors. This company also has no permission from the Reserve Bank of India.
Not surprisingly, these depositors are from the lowest strata of the society. The daily wage earning labourers are induced to deposit as low as Rs. 10 per day on the promise of a piece of land in near future. The representatives who get huge commissions on these deposits which amount to 30 per cent, never reveal that there is actually no sufficient land on earth to allot pieces of land to all these depositors. Moreover, many of these depositors stop paying after some time and the company never refunded these amounts to them. If someone asks, they threaten that the company would deduct penalty from the deposit. Several hundreds of crores of these deposits remained unclaimed with the company.
Like Amway India, the Agrigold also has several levels of fancy titles for its representatives. It offers attractive commission to them for mobilising deposits. The lowest level representative is called primary sales distributor and above him are senior sales distributor, executive sales distributor, marketing and sales distributor, marketing regional distributor, marketing area distributor, area super distributor, area super distributor-1, area super distributor-2, area super distributor-3, area super distributor-4 and area super distributor-5.
Right from the primary sales distributor, every one has to enroll ten members and depending upon the enrollment, the commission keeps on going up. From the 4th level onwards the title holders would get easy money, consisting of benefits of supervisor and group income which purely depend on the enrollment of new members into the scheme and not depend on the sale of products. And what product--a piece of land. The promoters know pretty well that if one person enrolls ten persons, at one point world population will be over and due to mathematical impossibility, crores of people would be cheated.
Recently, as part of its expansion, the Agrigold has added an amusement park in its kitty with the name 'HaaiLand' which was inaugurated by the Honourable Chief Minister of Andhra Pradesh, Mr K Rosaiah.
The Agrigold has already forayed into several manufacturing units including Ayurveda medicine, easy-cook instant foods, cosmetics, spa and yoga centres. All these were started with people's. In case of failed activity in any of these ventures, they need not worry about loss. Just they need not repay the deposits.
If all these ventures are profitable, the Agrigold could approach commercial banks and raise loans. But it has chosen to raise deposits from the gullible poor who cannot question or demand their monies back.