Agrigold would refund money as long as they raise new deposits
One of our readers Mr Sashi Kiran raises genuine doubts
I think I need to thank you a lot for the information you gave in your Corporate Frauds Watch blog. I was suggested by somebody among my friends circle to invest in Agrigold properties and was searching for some good testimonials to gain confidence about the decision but instead found some shocking news about the company in your blog. I am amazed that you could amass so much information about all this all alone on your own. Thank you once again for saving my hard-earned money.
But a small doubt, why did you lodge a sincere complaint in a police station instead of making it public in media? What was the problem that you faced that you did not take this issue to TV channels? I was wondering why not a single customer approached regulators like RBI or Company Law Board about this? Did you think of doing it or filing a public interest litigation after knowing all this? I feel bad for all those who have put their money into this company hoping for a good return, thats why I am asking you all these questions.
Your doubts are not unfounded. There are many people who raise such doubts. The main reason for no intervention by the police is generally there are no complainants so far. Still, the RBI has given direction to all the State Governments to check the illegal mobilisation of deposits from public. Police turn a Nelson's eye for reasons better known to them. By the time, these companies become defaulters, they would have made several millions if not billions. Then only the police register a case and start investigation. With the money power behind them, these companies prolong criminal cases in the judicial courts.
I have taken up these problems with the media - both print and electronic. However, they are interested only in the huge advertisements these companies give them but never care for public interest. If they have to survive with profits, they have to depend upon the advertisements and we cannot blame them. Anyway, they must have some social responsibility also. The latest case in point is, the swindle of Duck Development Society of Ongole, Prakasam district, Andhra Pradesh. I have warned both the police and media of the impending danger. Still, there is no action from both of them. Now the organisers of the society decamped with Rs. 50 crore. Who should be blamed for this fiasco?
The RBI states that the local governments should take suitable action and file criminal cases under the Section 58 S of RBI Act.
Corporate Frauds Watch has been regularly touch with the police and is whenever possible filing criminal cases against such companies. We have filed impleading petitions in the Andhra Pradesh High Court against at least 14 companies which obtained stay orders and got them quashed. Many of these companies closed shop.
GoldQuest International, Gemini Techno are among such companies which are completely shut down after criminal cases were filed against them.
We have filed public interest litigation against Amway India and it is pending in the AP High Court.
As long as they keep on getting new deposits from public, they refund the amounts to the investors. Once the incoming funds dry up, they close shop and the investors have nowhere to go. That is the tragedy.