The bubble of finance company Abhaya Gold burst

Corporate Frauds Watch has been warning people for the last two years that the bubble of finance companies like Abhaya Gold, Akshaya Gold, Agrigold and others would burst once the new deposits trickle down.

On May 31, 2010, people were warned in this blog not to fall prey to the dubious promises of these companies.

The agents of these companies keep on inducing people to deposit their hard-earned money with these companies only to line their pockets with the commission the company paying them.

Now the bubble of Abahya Gold was burst on Wednesday in Nuzividu, the mango town in Andhra Pradesh. 

Agents and depositors of Abhaya Gold financial schemes went berserk when they ransacked the office of the private finance company at Nuzividu in Krishna district as news of their being duped up to Rs 40 lakh spread like wildfire here on Wednesday. They destroyed computer systems and furniture of the company were destroyed even as the police arrested  local branch manager Venkateswara Rao. 

Some of the vandals looted the premises in spite of presence of the sizeable number of policemen and people.

The victims found that Abhaya Gold has been carrying out financial transactions in gross violation of the guidelines framed by the Reserve Bank of India. The trust of agents and depositors suffered a deadly blow following the company’s failure to refund matured funds deposited under different schemes.   

Abhaya Gold has joined the big list of defaulter financial firms that mushroomed in and around Krishna district. The anger of the depositors who lost their hard earnings crossed all the barriers when the company failed to stick to its word to refund investment along with attractive returns.

The patience of depositors evaporated as the local office has been misleading the investors with false promises about repayment for four months. Every time they approach the office to claim the matured deposit, the Abhaya Gold staff have been convincing them to come next day, the victims alleged.

For details visit:
HansIndia News Paper dt 7-2-2013 vijayawada Page No.2