Tuesday, 5 October 2010

Agrigold has no RBI permission to mobilise deposits

A reader from Mangalore, Melyn, wants to know whether Agrigold Ltd is a fraud or not.
Mr V V Rao Avvas, chairman of Agrigold is the former employee of Haryana-based Golden Forest Ltd which cheated several thousands of people after collecting about Rs. 200 crore. The police woke up later and filed a criminal case against the company. The criminal case is in the court and the depositors were not paid any money so far on the pretext the court has to decide the issue.
Basing on the past experience with Golden Forest Ltd in raising deposits from public, the Agrigold chairman has started collecting money from the public. They collect even Rs. 10 from the road side vendors stating that they would be given a piece of house site on a date in future. They need the whole state of Andhra Pradesh to give land to all its depositors. It is a clear case of deposit mobilisation which is against the law as they have no RBI permission to collect deposits.
Like Golden Forest Ltd, the Agrigold also claims that they have several hundreds of acres of land to sell if the depositors want their money back. Golden Forest also claimed the same thing but it had never paid its depositors.
A criminal case was filed against the Agrigold at Ramachandrapuram police station, Medak district, by Corporate Frauds Watch. Instead of facing the investigation, the Company has tried to influence the Corporate Frauds Watch through a top-level police officer. They should have filed a case against the Corporate Frauds Watch for registering a criminal case against it. However, it is silent and trying to influence the police officers.
So it is clear that the company is guilty. It is true, that the company owns several hundreds of acres of land. But that land is not enough to allot house sites to all its depositors. There is no security for the deposits mobilised from public. If the company closes shop, there would be no one to turn to. Already several hundreds of women who stopped paying money to the daily collectors half way have yet to receive their money. They are discouraged from submitting applications when they want their money back.
On the other hand, the company is indulging in money circulation scheme by offering huge commission to the persons who enroll more persons as agents to collect deposits. Like Amway it also gives some fancy names to the hierarchy of the deposit mobilisers. It is nothing but money circulation scheme. It gives as high as 30 per cent of the money to the collection agents from top to bottom.
The Agrigold is now trying hard to paint a rosy picture of the company and give a legal colour to it. It is inviting the top politicians to its programmes and conducting philanthropic activities like Amway. Recently, it conducted a body building competitions in its resort.
In a nut shell, it may continue for some more years and become a legitimate company like Sahara International or it may vanish taking away the public money.


wisemen said...

Syam sundar is a black mailer

wisemen said...

I have seen your previous comment on HAAILAND, do you know HAAILAND is one of the biggest tourism place in the AP, The HAAILAND also created a lot employment for Krishna & Guntur district people. And Agri Gold plans to create more projects like HAAILAND. And Agri gold Created direct and indirect employment trough out India.
chowdary BS

Shyam Sundar said...

Who said Agrigold did not create employment? It did create employment but at whose cost? Where the money came from? It is poor people'e money collected from them without authorisation from the Reserve Bank of India. That is the crime. Instead of answering to the question, why do these apologists beat around the bush. Regarding the accusation that I am a blackmailer, why doesn't the management file a libel suit or a criminal case of slander against me. These crooks are looting their own countrymen. Open up your eyes.

Satya said...

I have learnt from many people last week when I have been to my native place in AP that AgriGold is a good company to invest. A few of my close relatives forced me to buy some Agri land offered by AgriGold. After reading the blog apperently that its a kind of fraud company.

Any suggestions?

Shyam Sundar said...

The land AgriGold offers people, if at all they are offering, to sell would be in the middle of the woods. They give you a rosy picture that if you do not want land they would double the amount you invested after some years. Tall promises all the time. The racket would continue as long as they could mobilise new deposits. One fine day, when they failed to mobilise new deposits, it would crumble on its own weight. On that day, all the people who invested in it would be losers. Beware people! Do not fall for the tall promises.

Satya said...

Thanks Shyam

In each and every place in AP AgriGold became a popular investiment and many agents collecting money from almost each door step. It seems Agents are NOT aware of big picture of AgriGold but just looking for getting peanuts as commission.

Any information to share on existing case, if you have any, on VV Rao Avvas in Haryana scam?

David said...

Now they are spreading in Bangalore too, they have opened a franchise in nelamangala and started operations by appointing many agents to pool in funds, i got my hands on a Bond/Receipt offered by them for the New Depositors, the rules and conditions are in English and clearly benefit the Agrigold, there is no mention of returning money but only a maturity period and some piece of land given in return, and if any untoward things happen with the project like calamities or state govts problems they are going to deduct the value of the land and return the balance, considering and individual will pay about 5k to 15k over a period of 2-3 years, either he would be asked to shell out more to get the land or loose what he has paid,
Also they have put up couple of Hoardings here in Bangalore and advertising in TV9 which these agents ask the potential Bakras to watch before taking it up,
Bangalore has already witnessed on of the Largest of Real Estate Frauds in the name of Orange Properties who have cheated to the tune of 100 Crores to hundreds of investors most of these well educated High Society IT Class of Bangalore, but Agrigold seems to be targeting poor lower class who cant even read the fine print conditions written in English.
To make it reliable if they want to they should offer assurance to the state government or RBI, moreover all disputes are limited to the Jurisdiction of Vijaywada, imagine people in Bangalore need to go to Vijaywada to recover 5000 and 10000 their hard earned money indeed and dream of owning a land!!

mahadevappa said...

Recently Agri gold has launched a Venture in the name of Eco Valley at Hosur, I have seen the Hoardings and I have approached to their office, and they have showed me all the Government approvals documents also. And i have also visited the site. The site is very beautiful. Developments also are going on there. I want to book a plot there. Please give your advice.

Mahadevappa from Kolar

Shyam Sundar said...

Ask the AgriGold to register the plot immediately in your name by paying full amount. At least get the sale agreement registered immediately. Give them time to get the land registered in your name.

Anand said...

Hello Mr. Shyam sunder...
I am from orissa, I came to know about the agrigold company from a friend working in Hyderabad. he advised me to invest in it.I went through the website but I am wondering how can a company grow this much in a short period of 15years... If possible please do tell me about the promoters & the growth history of the company..How do they ensure safety of money invested with them ???

Shyam Sundar said...

There is no safety for deposits that is the crux of the issue.

srinivas said...

k.srinivasarao guntur
syam garu a small information agri gold company are running the entire land based company. and next all ready established so many industries in our country. so it is a very good growth all projects is the very demanded projects long life prijects. power, tourisem, infrastructure,agribuisiness, and knowledge servises so theese all divisions very good divisions, so all ready company well established pubic amount is safe why because company procured the thousands acres of land at low cost previous years, so that lands now a days very valuble, next at the same time company are cultivating so many crops diffrent type of crops, so sir i feel, agrigold gives a lot of employment in ap, karnataka, orrissa, some states, so many people are living by agrigold group of industries. company is running exelent projects, that projects is very need in country devolepment. this company is better than the financial sector and share market sector. a small examle;- recently all insurance companies was collcted the huse amounts from the rural and semiurban area people. like ulip plans (moneyplus).. maximum fund collecting company govt entrteprise "lic of india" i know all money plus customers entire loss in investement amounts. basically,... , rural area people is the low education people, they are feel expected some exes amount of investement amount to the maturity date , but money plus plan is fail. but agents enjoy to commissions public is loss. now a days lakhs of the customers are blaming to the lic. but company is not responding. that villages agents very suffering by this problem,where is the justice sir.. so agri gold is going to right way, last sixteeteen years history is very good, lakhs of customers was satisfied, it is is practically is right. so above topics is our owne feeling, and i am looking to company so many years. any information will sent me sir thanque sir

soma said...

Even agrigold opned its branches in taluk levels and collecting money from small small vendors tellling their money will get doubled in 6 years and giving insurance also, how this possible , if a company wants to give insurance means it should be get registerd through IRDA but it is not under IRDA, even small vendors investing money without any talk, y RBI is not seeing all these ?

amar said...

By rules it may using loopholes in the system. I need any other evidence regarding other miss-using funds and showing lands without having lands like that.

R u blog owner? Mr.Sham

Shyam Sundar said...

Amar, How much money is being collected from how many persons? How much land actually AgriGold possesses on its record? How many of the depositors of Agrigold got land registered in their name?
AgriGold would refund deposits as long as it gets new deposits from public. Once it stops the fish would be out of water.

sanjeev said...

I am really appreciating you.actually as per my knowledge in agri gold 15000 cr public deposit, akshaya is having 1500cr, welfare run by standing MLA is having 1000cr, myth ri group is having 500cr of public money and many more companies is having thousands of crores of poor people money. There is no rules no guide lines for spending of public deposits.they r real cheaters. For example agri gold is collecting 200 cr public money per month in this 30percent commission means straight away they are loosing 60 crores per month means just imaging what is the huge loss off agri gold as per my knowledge now agri gold is a loss of around 7000 crores one fine day lakhs of its agents are going to suicide. I request all statutory bodies to stop this buisiness immidiatly other wise lakhs of agents are going to suicide. Dear Shyam pl fight againist these companies v all r with u . See u next bye

G Venkatesh said...

Mr. Shyam, isn't it time to prepare a concrete dossier on AgriGold with all possible evidences and handover to SEBI. Like Sahara, SEBI may take care thereafter.

G Venkatesh said...
This comment has been removed by the author.
sudhir said...

Agri Gold looks like South Indian Version of Saradh Group,soon agri gold will also collapse.

jjreddy said...

Guys, I think we really need to understand whether agrigold is fraud or right company? I don't think the entire world or india is sleeping except Syam. I am sorry Syam. I didn't see even a single negative review about agrigold except yours. Please share links if you have any. I would like to open my eyes too..

It would be great if you can post some proofs or fraud cases of how Agrigold is cheating public people? We know many insurance companies and financial companies are cheating poor people just for money making. Every one would have got into some trap and lost their hard earned money. I also lost money in ULIP policies and Money schemes. But I really want to know what is the force behind writing this blog. Even if I take my Insurance policy bond, everything will be mentioned in the favour of company only. This is the way these companies get matured and have classes for all posibilities.

Atleat what you are explaining is not enough for me to get clarity. Agrigold is not showing the entire india land as security for their deposits. They are showing the land value worth of deposit money may be little more. It is known fact that they have 1000s of acres of land as backup for this purpose. They buy huge lands in non developed areas and then they develop them too. They use them for generating income.

For that matter every private company can change their board as soon as they see bitter experiences.

Guys, please share your thoughts and meaningful logics to make me understand if Agrigold is cheating. I am planning to invest some money. If Agrigold is cheating people, why is it not mentioned anywhere in this fastest internet world.

Shyam Sundar said...

This JJ Reddy conveniently skips the question that the RBI has no permission to collect deposits from public. period.

shwetha said...

recently my aunt has become a Agrigold agent and suggested me to invest money from US. I just browsed and came across ur Blog. Thanks for the information. I shall suggest her to back off from the business too .

Photosnaveen Pedapati said...

Dear Shyam Sundhar.. !

I have only Few questions for you.
1. If Agrigold doesn't have a proper permissions to collect deposits, Why the RBI is not taking action. Its Constitutionally Autonomous Body. No one will stop RBI in taking any action, if Agrigold is doing any such kind of frauds,
2. What is your intention and personal interest in opening up a blog instead of facing it legally in the court of law. ?

In AP, they are registering their Apartments and other ventures. Banks and NBFCs are funding for them. ?

Do you know the reality. ?

hope that you can revert straightly

Naveen. P

brahmam bathini said...

I am the victim of this company, they gave me psot dated cheque for two months and finally the cheque was returned. I am facing severe problem.