Andhra Pradesh eyes 16,000 acre of Agri Gold firm

Yanamala said that the Agri Gold has 16,000 acres of land in seven states

Update: 2015-01-17 23:46 GMT
Andhra Pradesh finance minister Yanamala Ramakrishnudu

Hyderabad: Andhra Pradesh government is considering the possibility of attaching 16,000 acres of land belonging to Agri Gold group of companies.

In the wake of irregularities by the company, AP finance minister Yanamala Ramakrishnudu on Saturday held a meeting with the police and finance department officials to discuss about a legislation to curb private chit funds and financial institutions.

Mr Yanamala said that they have decided to bring in a legislation that is similar to Odisha and Tamil Nadu governments. He said that the officials will study the Act of both governments and prepare a draft Bill and the government will introduce the Bill in the Assembly during the Budget Session.

Mr Yanamala said that the Agri Gold has 16,000 acres of land in seven states and the government is taking legal opinion of attaching these lands. He said that the company has 30 lakh subscribers and Rs 500 crore deposits in commercial banks and Rs 70 crore in non commercial banks. He said, that the CID is investigating the case and the police has written letters to sub registrar not to register or transfer the lands of Agri Gold and asked banks to freeze their accounts. He said that the West Godavari police searched the house of Agri Gold and seized 2.5 kg gold and Rs 7.4 lakh on January 4.

Minister Yanamala said that the Agri gold Company have to pay Rs 8000 crore to the public and the Company claims that they have properties worth Rs 10000 crore and they would pay back the customers.

He said that the government will bring the act making compulsory registration of any chit fund and finance institutions. He said that the government will take legal opinion to incorporate the sessions to attach the properties in the lines of Enforcement Directorate (ED) of any chit fund or finance institution if it will be indulged irregularities. He said that the Agri Gold Company collected the deposits from the pubic by attracting with more interest and bought 16000 acres and started real estate business. He said that the government will constitute special courts to clear the pending cases and appoint public prosecutors in the courts.

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