Vijayawada, Visakhapatnam: The CCS cops are investigating if the ongoing financial crisis in the Agri Gold Group of Companies, that failed to repay thousands of its depositors and agents, is not yet another multi-crore scam.

Eluru CCS police began raiding the residences of the firm’s MD and directors on Sunday, following complaints by depositors and agents in West Godavari district.

The firm had been collecting monthly instalments from depositors in AP, Karnataka and Tamil Nadu since many years, promising them that they can avail land plots at the end of a pre-determined period. However, the cheques issued by company had been getting dishonoured since over six months.

The police has found that the company, which has to pay over Rs 7,000 crore to its customers and agents, had bought around 12,000 acres of land across AP and other states.

Preliminary investigations reveals that the company, which has aggressively invested in land, is worth some Rs 20,000 crore.

Sources said the company is not willing to sell the lands, but is trying to return the deposits. However, some of its agents said that the company has sold its theme park ‘Haailand’.

The firm’s directors, including managing director Avva Venkataseshu and chairman A. Venkata Rama Rao were cooperating with the investigating officers, said sources.

Meanwhile on Monday, hundreds of depositors and agents gathered on all roads leading to the firm’s head office at Revenue Colony in Vijayawada, forcing cops to form a security ring around the premises.

Teja, a depositor, said that the firm owes him Rs 2 lakh as his investment matured two months ago. Radha Kumar, who has to get over Rs 30,000, said that the cheque given to her bounced in August 2014 and the firm was not responding. Depositors and agents staged protests in other parts of the state.