Concerns over firm downing shutters after fleecing depositors

Gadwal: In Aiza town, near the Tahsildar office, a 25-year-old man from Gujarat set up a real estate company under the name AGGK Trades Pvt Ltd with the support of some local bigwigs. Within a very short span, the company reportedly collected crores of rupees from the public. Their modus operandi was simple. They ask people to deposit Rs 1 lakh and receive Rs 40,000 monthly for five months (equivalent to 40% interest per month). For an investment of Rs 10 lakh, they promised Rs 4 lakh per month for five months, all without any collateral. To provide some semblance of security, the company issued post-dated cheques and offered to register plots at low prices in remote areas of Aiza. The company representatives also promised commission to those who brought in new investors.

This lure of easy money attracted many gullible, who not only invested but also started recruiting others, as they are promised huge commissions. Until recently, the company operated two offices in Aiza with visible nameplates. By Sunday morning, the main office’s flex board was torn down and the nameplate of the adjacent office was whitewashed. This drastic action gave credence to rumours that it is preparing to disappear altogether.

When journalists questioned the company’s representatives, they were directed to the local SI, stating that all documents had been submitted to him. When the SI was approached, he responded, “File a complaint, and we will take action.” On Monday, the company’s name board was turned over. This unfolding saga raises questions about the legitimacy of the company and the safety of the investments made by the public.