The state told the court that it would conduct the bidding process in the last week of June.

Hyderabad HC seeks report from Andhra on auction of Agri Gold and Akshaya Gold properties
news Crime Friday, June 09, 2017 - 09:00

The High Court directed authorities of the Andhra Pradesh CID on Thursday, to submit a report on the progress made in the auctioning of properties belonging to Agri Gold and Akshaya Gold.

This came after reports that the HC had earlier approved 12 properties belonging to the two companies, for auction through the state government's e-portal.

The New Indian Express reported that the HC bench was hearing several petitions by depositors and agents of the two companies, who had sought a CBI probe into the alleged fraud, and demanded a complete refund.

The state told the court that it had made arrangements for the auction, and would conduct the bidding in the last week of June, the TNIE report adds. 

Following this, the case was adjourned to July 4.

Around 3.2 million people in many states including Telangana, Andhra Pradesh, Tamil Nadu and Karnataka, were duped by the AgriGold scam, which came to light in 2014.

The company owes Rs 6,380 crore to over 32 lakh depositors in nine states, with Andhra Pradesh leading the list with 19 lakh depositors.

The company lured several lakh customers on the promise that their investment would come back to them with higher returns. Several 'agents' were also sent out to convince people to invest in the group of companies.

The company allegedly took this money and invested heavily in real estate, before branching out to other areas as well, and finally duping the customers.

The Akshaya Gold case involved alleged fraud to the tune of Rs 330 crore, and employed a similar mechanism.

The company collected periodic instalments from people, and said that they would get their money back with a high rate of interest.

The CID is investigating both cases, while the state is identifying properties of the company to auction, so that it can refund the investors who were duped.

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