Agri Gold tops dubious list of fraudsters; Transstroy, Heera follow
Hyderabad: Agri Gold Group has earned the dubious distinction of topping the list of firms, which indulged in gross financial irregularities, according to the Enforcement Directorate (ED). The next in the line in the dubious list were Transstroy India Ltd (TIL) and Heera Group headed by Nowhera Shaik.
ED officials, who are probing cases under the Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (Fema), among others, have taken a serious note of the high-profile cases in which lakhs of customers were fleeced.
Several complaints were lodged by depositors against Agri Gold a few years back. The group collected deposits from around 19 lakh customers and 32 lakh account holders in the name of real estate investment with promises of high returns or a residential plot.
ED investigation revealed that Agri Gold group ran a fraudulent collective investment scheme in the guise of real estate business by floating more than 130 companies. Using thousands of commission agents, the company collected Rs 6,380 crore from over 32 lakh investors. During the course of investigation, properties worth Rs 4,141.33 crore were attached by ED.
Similarly, the ED officials found that Transstroy India Ltd. (TIL) and its promoters showed inflated turnovers with the help of bogus sales and purchase transactions with its own associated entities and shell entities, and availed credit facilities. They diverted the funds fraudulently by opening accommodated letters of credit and caused loss to the extent of Rs 5,115 crore (including interest) to a consortium of banks. The company is owned by Telugu Desam leader Rayapati Sambasiva Rao and his family.
Meanwhile, the Heera Group of Companies and its managing director Nowhera Shaik cheated gullible people and collected thousands of crores promising an abnormal 36 per cent annual return. The ED attached `400 crore worth properties of Heera Group and recently issued a notification for conducting auction of those properties and rendering justice to its customers. It has called for their auction following orders of the Supreme Court.
The agency had also facilitated the restitution of properties worth Rs 79.20 crore to State Bank of India (SBI) in connection with a money laundering case against Musaddilal Jewellers and others for indulging irregularities during demonetisation exchanging Rs 111 crore.
Box: ED cases
November 7, 2024: ED filed a supplementary prosecution complaint (PC) under PMLA against Agri Gold group. Several FIRs were registered by the police across states, including Telangana, Andhra Pradesh, Karnataka, Odisha and Andaman & Nicobar against the group.
November 13: ED initiated the process of restitution of properties to the genuine investors of Heera Group, following the Supreme Court's directions. The apex court directed Nowhera Shaik, the firm’s managing director, to deposit Rs 25 crore with ED within three months.
December 12: ED filed prosecution complaint (PC) in the court against Sahiti Infratec Ventures India (SIVIPL) and its managing director B. Lakshminarayan for generating proceeds of crime to the tune of Rs 842.15 crore from homebuyers on the false pretext of sale of inventory in projects launched by the Sahiti group.
March 4, 2025: ED filed prosecution complaint against MBS Jewellers, MBS Jewellers and Mussadilal Gems & Jewels (India), for receiving gold bullion from MMTC on buyers credit loan basis by keeping the forex position open without paying the additional five per cent margin money because of which MMTC suffered a loss of Rs 549.06 crore.
