ED’s Bold Move: Selling 6 Crore Worth of Property to Pay Compensation to 32 Lakh Scam Victims

New Delhi (The Uttam Hindu): In a significant development, the Enforcement Directorate (ED) has started selling confiscated properties worth more than Rs 6,000 crore to compensate the 32 lakh investors who were duped in the Agri Gold Ponzi scam. This decision comes after the Supreme Court and Andhra Pradesh High Court supported the return of 'proceeds of crime' to the victims reinforcing the commitment to ensure justice for those affected by the massive fraud.

The sale of the attached properties has already commenced, with ED targeting over 2,300 residential and commercial plots, apartments and amusement parks across multiple states. According to reports, properties in Andhra Pradesh, Telangana, Karnataka, and Odisha are being liquidated to raise the funds needed for the compensation. Notably, of the 2,310 attached properties 2,254 are located in Andhra Pradesh with smaller numbers in Telangana, Karnataka, and Odisha.

The Agri Gold Ponzi scheme which had defrauded its customers of over Rs 6,400 crore had been operating through agents who collected funds from investors across various regions. The scam victims were promised high returns on investments in agricultural and real estate projects, but the company failed to deliver leading to widespread financial losses.

The ED’s move follows Prime Minister Narendra Modi’s statement during the Lok Sabha election campaign where he hinted at exploring changes to laws so that scam victims could be compensated using confiscated properties. This effort aligns with the government’s ongoing commitment to providing relief to those who have suffered due to fraudulent schemes. Last week, the ED approached the PMLA court in Hyderabad seeking permission to sell these properties and use the proceeds to compensate the victims. The sale is expected to bring some relief to the 32 lakh customers who were promised returns but instead lost their hard-earned money.

In December 2020, the ED arrested the key promoters of Agri Gold including Ava Venkat Rama Rao and his family members—Ava Venkat Seshu Narayan and Ava Hema Sundar Vara Prasad—for their involvement in orchestrating the scam. The ED’s actions, backed by court rulings, mark a significant step in ensuring accountability and justice for the victims of one of the country’s largest Ponzi schemes. The agency continues its efforts to liquidate the attached assets, with hopes of returning at least part of the lost funds to the defrauded investors.