The Crime Investigation Department (CID) is looking into the affairs of Akshaya Gold Farms and Villas Limited that has mobilised deposits allegedly in violation of rules.
Office ransacked
Members, who invested in the company, tried to ransack its office in the city a few days ago.
The provocation was a cheating case registered against the company at Ongole.
The company did not obtain permission of the Reserve Bank of India for mobilising deposits but prima facie evidence points to the fact that it collected deposits, sources in the CID told The Hindu on Tuesday.
On receipt of a complaint, the CID head office in Hyderabad has directed its Visakhapatnam branch to investigate the matter.
Public warned
The CID has also put out a notice on its website warning the public against joining the company as a member.
Though the company obtained permission for carrying out businesses in real estate, farm lands, construction and a host of other activities, it had not applied for permission to run as an NBFC (Non Banking Financial Company).
The company was, therefore, not permitted to collect deposits from the public, the sources said.
Chits issue
Meanwhile, the Economic Offences wing of the CID is getting ready to auction the movable and immovable property of V.R. Chits in the city.
Paying back
The proceeds from the auction would be utilised to pay back the members who had lost their money in the firm, which was closed a few years ago following allegations of embezzlement of funds by the management.
