Chairman of AgriGold Farm Estates India A Venkata Rama Rao and managing director AVS Narayana Rao were tonight arrested by Andhra Pradesh Police in connection with an alleged multi-crore scandal. They were placed under arrest after an 8-hour interrogation by the CID, and will be produced before courtat Eluru today, sources said.
Agri Gold was alleged to have duped several lakh gullible investors, who invested their money in many of the company's ventures, to the tune of Rs 22,000 crore. A case in this regard is heard by the High Court of Judicature at Hyderabad for the state of Andhra Pradesh and the state of Telangana, and is slated to come up for hearing tomorrow.
During the last hearing recently, the court came down heavily on the CID over the "slackness" in the investigation and its failure to arrest the company management. It warned that the case would be handed over to the CBI.