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.