AgriGold started cheating in neighbouring states too
One of our readers Mr David writes from Bengaluru:
Now theAgirGold is 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 government problems they are going to deduct the value of the land and return the balance. Considering an individual will pay about 5,000 to 15,000 over a period of 2-3 years (In fact it is 900 days on the basis of daily payment- Ed), either he would be asked to shell out more to get the land or lose 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 (lambs) to watch before taking it up,
Bangalore has already witnessed one of the largest of Real Estate Frauds in the name of Orange Properties who have cheated to the tune of Rs 100 Crores (Rs one billion) to hundreds of investors. Most of these are well educated High Society IT Class of Bangalore. But Agrigold seems to be targeting poor lower class who can't 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 Vijayawada. Imagine people in Bangalore need to go to Vijayawada to recover Rs 5000 and Rs 10000 their hard earned money indeed and dream of owning a land!!
It is really appreciable that you have gone through whole issue and rightly analysed it. This is the racket launched by AgriGold all over south. Not only that, they are also offering huge commissions to the agents which amount to thirty per cent. In effect, the owner of AgriGold, Mr V R Avvas gets only 70 per cent of the amount deposited by the investors. Anyway, he has not intended to return the amount. Whatever he gets, he coolly pockets leaving the public in the lurch. As long as he gets new deposits, he refunds money to the old depositors. Once the new deposits stop coming in, then the true colours would come out. But do we need to wait till that happens? It is high time, the police swung into action and take suitable action by filing criminal cases against the AgriGold.