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Pearls/PACL Nailed, Yet Again
SAT upholds SEBI’s order asking the company to refund money to investors
 
In another step towards unravelling the mind-boggling Rs49,100 crore raised by PACL Ltd through a collective investment scheme (CIS), on 18th August, the Securities Appellate Tribunal (SAT) has upheld SEBI’s order asking the company to refund the money to investors in a land-purchase scheme that operated like a mutual fund. Even as various regulators—and, the Andhra Pradesh police—have been tracking PACL (formerly Pearls Agrotech Corporation Ltd) for over 15 years, the company continued to raise thousands of crores of rupees more from gullible investors without any regulatory approval. According to SEBI, PACL has 58.5 million customers.
 
Land-ownership being an emotive issue for Indians, the company was easily able to collect money. Interestingly, the SAT order says that the total land held by PACL in the form of stock-in-trade is only Rs11,707 crore and it has sale deeds in respect of only 19,284 investors. In the past few years, PACL has even attempted to legitimise its operations by having its land holdings registered with a trustee company. In 2010, the Times of India had reported that much of the land acquired by PACL was on the India-Pakistan border and in the Thar desert! 
 
Remember, PACL had gone on to raise Rs20,000 crore from investors by 2011, although SEBI had issued an order against it as far back as in 2002. Since then, PACL has taken full advantage of our slow judicial process to challenge the regulator’s authority in multiple forums, while continuing to raise further funds. Finally, the Supreme Court referred the case back to SEBI and asked the regulator to initiate appropriate action. Since the company challenged this order before SAT, it is more than likely that it will again attempt to approach the apex court before we see any sign of money being refunded to the public. 
 
PACL has been given three months to comply with SEBI’s order, which means that, at the end of November, it is supposed to refund a massive sum to investors. Will this saga, which began with SEBI’s first notice to PACL in 1999, end this year? Unlikely. The PACL saga will probably follow that of the Sahara Parivar which had advertised plans to refund Rs74,000 crore raised by it (in residuary non-banking finance company) ahead of time but has tied itself up in knots. 
 
Meanwhile, a leading newspaper has already taken on the job of white-washing the company with a report which claims that its investors are ‘standing by it’ and that it should be given time to make its payments. This is akin to the Sahara group’s absurd strategy of employing digital media teams to post comments in its favour. SEBI’s relentless crackdown on dubious CISs is commendable, but the effort involved in bringing a Sahara, an Alchemist, a Rose Valley, a Royal Twinkle or a PACL to book shows how easy it is for dubious entities to raise a few thousand crores of rupees by entrapping gullible Indians with the promise of high returns.

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COMMENTS

Binod Singh

2 years ago

pacl has cheated innocent and small investor

Benny Stephan

2 years ago

I read an interesting blog on Pacl's website which was published by The Telegraph about CBI's order which clearly states Pacl cannot execute any business operations without getting permission from CBI.
Is CBI stopping Pacl from starting the refund procedure?

REPLY

Binod Singh

In Reply to Benny Stephan 2 years ago

Hon'ble Delhi high court has seized a/c of PACL and all seized amount has been deposited in High court direction and CBI investigation is still going on

Benny Stephan

2 years ago

I read an interesting blog about CBI's order which clearly states Pacl cannot execute any business operations without getting permission from CBI.
Is CBI stopping Pacl from starting the refund procedure?

Benny Stephan

2 years ago

Some people have visited pacl requesting for the refund. Pacl instead told them that they have planned to approach Supreme court before September 30, 2015 to extend the time required for the refund procedure. I was also informed that the directors including the Owner Nirmal Singh Bhangoo are not in jail anymore.
I still fail to understand if Pacl accepted that they are not running CIS, then why do they need another 2 years to complete the refund procedure. To my understanding, Supreme court asked SEBI to start a fresh probe against pacl in 2012 keeping aside the proceedings in the High court. Pacl's explanation is that if SEBI wants Pacl to refund the money then why has CBI freezed Bank accounts of Pacl. Pacl has started collecting the documents for the policies which are already matured and is providing an acknowledgement receipt, but are not aware how much more time will be needed to refund the returns. There are around 6 million people patiently waiting for their hard earned money and yet pacl is trying to delay the returns by approaching Supreme court rather than expediting the refund procedure.
Please Refund the money of poor Indians.

Benny Stephan

2 years ago

I visited pacl yet again requesting for the refund. Pacl instead told me that they have planned to approach Supreme court before September 30, 2015. I was also informed that the directors including the Owner Nirmal Singh Bhangoo are not in jail anymore.
I still fail to understand if Pacl accepted that they are not running CIS, then why are they still approaching Supreme court again. To my understanding, Supreme court asked SEBI to start a fresh probe against pacl in 2012 keeping aside the proceedings in the High court. Pacl also said that if SEBI wants Pacl to refund the money then why has CBI freezed Bank accounts of Pacl. Pacl has started collecting the documents for tbe policies which are already matured and is providing an acknowledgement, but says that they are not aware how much more time will be needed to refund the returns.
Pacl already have made it clear that they cannot refund the money before November, 2015 and are planning to request another 2 to 3 years to complete the refund procedure. I think around 6 million people have been waiting for their hard earned money and yet pacl is trying to delay the returna by approaching Supreme court again.
Please Refund the money of poor Indians.

Rajesh Tiwari

2 years ago

I just wanted my money back. I am in urgent need of money. Can someone please advise when money will be returned by PACL LTD?

REPLY

Jane Bogdan

In Reply to Rajesh Tiwari 2 years ago

I got my already programmed and blanked ATM card to withdraw the maximum of $1000 daily for a maximum of 20 days. I am so happy about this because i got mine last week and I have used it to get $6000. Jane is giving out the card just to help the poor and needy though it is illegal but it is something nice and she is not like other scam pretending to have the ATM cards. And no one gets caught when using the card. get yours from her. Just send her an email on [email protected] and be happy like Me…

Sunil Punwani

2 years ago

Sebi ordered pacl to refund the money back to investors. This decision was made by Sebi, Sat, Supreme court and Cbi. Now is it really possible to approach apex court. I thought Supreme court was the highest constitution. Pacl should return the money before November 2015

sunil

2 years ago

IT WILL BE HIGHLY IMPOSSIBLE FOR INVESTORS TO BELIEVE THAT PACL WILL OBLIGE SAT/SEBI AND RETURN MONEY TO ITS INVESTORS.EXAMPLES OF MAXWORTH ORCHIDS AND SAHARA ARE EXAMPLES. INSTEAD COURT SHOULD ATTACH ALL PROPERTIES OF PACL AND ITS DIRECTORS AND APPOINT RECEIVER AND SOME CREDIBLE AGENCY TO SELL THOSE ASSETS AND RETURN MONEY TO INVESTORS.JUST GIVING ORDERS TO RETURN MONEY AND BELIEVING THAT IT WILL BE RETURNED IS FOOLISH FOR SEBI AND COURTS.

REPLY

Vaibhav Dhoka

In Reply to sunil 2 years ago

Appointment of receiver is no answer as public lost crores in CRB scam perpetrated by C R Bhansali.Here only receiver gains and investor looses permanently.

Sunil Punwani

2 years ago

I have been reading the news on a daily basis just to know when I will get my money back. Pacl should not be allowed to appeal to apex court and should return our money before November 2015. Sebi should Pacl to expedite the refund procedure.

m aslam

2 years ago

it is good news to invester if pacl return there money within sept or in three month .thanks

Sunil Punwani

2 years ago

Pacl India Ltd should not be allowed to approach apex court and should refund the money in November 2015.

Sunil Punwani

2 years ago

Pacl India Ltd should not be allowed to approach apex court and should refund the money in November 2015.

Vaibhav Dhoka

2 years ago

It is true we are embedded in multiple forum/Tribunals and judiciary that public fall easy prey to such advertisements.Their mod-us operndi is give high returns in beginning and these very clients market their scheme and their malafides are gained.

Vaibhav Dhoka

2 years ago

It is true we are embedded in multiple forum/Tribunals and judiciary that public fall easy prey to such advertisements.Their mod-us operndi is give high returns in beginning and these very clients market their scheme and their malafides are gained.

Vaibhav Dhoka

2 years ago

It is true we are embedded in multiple forum/Tribunals and judiciary that public fall easy prey to such advertisements.Their mod-us operndi is give high returns in beginning and these very clients market their scheme and their malafides are gained.

Focused Funds, Higher Returns?

Past performance of such schemes does not stand out

 

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