MLM / Chain Money
PACL Scam: Bhangoo gifted $2.5 million home to daughter just before his arrest
Before his arrest in January 2016, Nirmal Singh Bhangoo, founder and chief of PACL gifted a lavish $2.5 million home in Melbourne to his daughter and son-in-law, reveals a report from The Australian
 
Days before his arrest by Indian authorities, Nirmal Singh Bhangoo, founder and chief of PACL Ltd, formerly known as Pearl Agrotech, involved in the Rs55,000 crore scam, transferred as a gift a $2.5 million inner-Melbourne house to his daughter and son-in-law just three weeks before he was jailed, reveals a report from The Australian.
 
"Land titles records show Bhangoo transferred the home on Mont Albert Road, Mont Albert, in Melbourne's inner east, to his daughter Sukhwinder Kaur and her husband Singh Gurpartap on December 18 last year. There is no listed price for the property transfer, with 'desire to make a gift' entered in the consideration field. Mr Bhangoo appears to have bought the salubrious home for $2.38 million in 2006," the report says.
 
According to the report, in 2011, a Sydney suburban lawyer conducting simple due diligence on PACL, and its Australian arm Pearls Australasia, warned that the group was likely "an illegal syndicate" and a "pyramid scheme". The report says, "Those facts were completely missed by federal government agency Austrade - funded by taxpayers to the tune of $200 million a year, and which introduced Pearls to Australia - and both the Queensland and NSW governments, with former premiers Anna Bligh and Barry O'Farrell heavily endorsing the Indian company."
 
In January this year, the Central Bureau of Investigation (CBI) arrested four officials of PACL, including Nirmal Singh Bhangoo, chairman and managing director (MD), Sukhdev Singh, MD and promoter-director and two executive directors Gurmeet Singh and Subrata Bhattacharya in the Rs55,000 crore collective investment scam.
 
Market regulator Securities and Exchange Board of India (SEBI), as part of its recovery proceedings, too had attached in December 2015 all bank and demat accounts, mutual fund portfolios of PACL and its eight directors and promoters. Besides PACL, its promoters and directors against whom SEBI initiated the proceedings, are Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Nirmal Singh Bhangoo, Tyger Joginder, Gurnam Singh, Anand Gurwant Singh and Uppal Devinder Kumar.
 
 

 

Lodha Committee Notice

 

Meanwhile, the Justice RM Lodha Committee, has asked investors of PACL not to hand over documents related with their investment to anyone till further notice. It also advised investors not to make any fresh investment in PACL.

 

SEBI has formed the three-member Committee headed by Justice Lodha as per directions from Supreme Court to dispose land purchased by PACL so that the sale proceeds can be paid to the investors, who have invested their funds in the Company for purchase of the land.

 

In a public notice published in newspapers on Saturday, the Justice Lodha Committee also asked buyers not to purchase properties owned by PACL or related entities, including its directors.

 

 

SEBI has told The Australian that it is aware of $133 million funnelled to Australia (by Bhangoo and PACL), but the total figure is likely significantly higher and could be as high as $500 million or more, if claims made by Pearls and its associates in recent years are to be believed.
 
According to the report, the $133 million figure represents money sent from Pearls to create the Gold Coast-based Pearls Australasia in September 2009 with struggling Queensland developers Paul Brinsmead and Peter Madrers.
"Pearls Australasia subsequently spent $62 million buying the Sheraton Mirage resort on the Gold Coast and $20 million on refurbishments. Its efforts were boosted by paying Indian cricketers Harbhajan and Yuvraj Singh, and Australian cricketer Brett Lee, large sums of the money to spruik the company," it added.
 
Earlier, The Australian, had revealed that Lee, via his then manager Neil Maxwell, was paid $300,000 to be a "brand ambassador" for Pearls. The report says, "It is not suggested that Mr Maxwell and Mr Lee were aware Pearls was a Ponzi scheme when they endorsed it. The Australian can reveal Mr Maxwell was also involved in a plan by Pearls Australasia to buy the Eastgardens Medical Centre at Pagewood in Sydney's east for $1.5 million from its owners, who included doctor Harry Harinath, who was at the time chairman of Cricket NSW."
 
"At that time, Pearls executives said the company had $660 million to invest in Australia, the medical centre owners were told. Owners of the medical centre located in the Eastgardens Shopping Centre, 9km south of the Sydney CBD, were concerned about the legitimacy of Pearls, and engaged Vaikom Rajeev lawyers of Homebush West to conduct due diligence on the company," it added.
 
According to the report, solicitor Sundar Rajeev, using publicly available information, determined that Pearls was most likely a scam and advised heavily against the sale of the medical centre. Quoting a note by Mr Rajeev, the newspaper said, "There is a reasonable likelihood that Pearls Australasia is being used as a vehicle for perpetuating a pyramid scheme or similar activity in Australia. It is highly risky to sell the medical centre to a company like Pearls Australasia, particularly given the negative credibility of its members."
 
"That advice was in large part based on then long-running legal action by Indian authorities against Pearls, the fact several of its key executives had in 2008 been found to have acted inappropriately, and that Mr Brinsmead and Mr Madrers had previously operated developer Resort Corp, which collapsed in March 2009," the newspaper says.
 
According to The Australian, each of those red flags occurred before Austrade introduced Pearls Group India to Mr Brinsmead and Mr Madrers in mid-2009, leading to the creation of Pearls Australasia. Mr Maxwell told The Australian he had facilitated the meeting between Pearls and the owners of the Eastgardens medical centre because he knew Dr Harinath and was aware Pearls was seeking to enter the healthcare market. "He said he played no other role in the proposed deal, which 'from all accounts didn't go well', " the report said.
 
It further pointed out that from 2008, as their Resort Corp group was floundering, Mr Brinsmead and Mr Madrers paid Austrade tens of thousands of dollars to introduce them to suitable Indian investors. It says, "In May 2009, after the Resort Corp collapse, then Austrade South Asia head Peter Linford introduced the pair to Pearls, leading to the creation of Pearls Australasia. Mr Linford subsequently boasted that he had helped Pearls invest $500 million in Queensland properties and the company was 'looking for more'."
 
PACL (earlier Pearls) is a Delhi-based company, proclaiming itself as a real estate company which has collected huge money for the last 13 years from almost six crore people from all the states in India. 
 
After conducting inquiry, SEBI on 22 August 2014, issued an order directing PACL, its promoters and directors to wind up all the existing CIS and refund the monies collected by the company to investors as per the terms of offer within a period of three months from the date of the Order. 
 
PACL filed an appeal before the Securities Appellate Tribunal (SAT), which was dismissed on 12 August 2015. The SAT directed PACL and its promoters-directors to refund the money within three months. Since the company and its promoters-directors failed to refund the money to the investors as per the directions of SEBI and SAT, the market regulator said it has initiated the recovery proceedings.
 
According to SEBI, the amount due to investors of PACL would be over Rs55,000 crore. This  includes promised returns, further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery of Rs49,100 crore from PACL. 
 
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COMMENTS

vswami

1 year ago

If were to care to 'know':

Anyone having an eye or taste for knowing about such murky deals of the highest order , heard of off and on, mostly in recent times, may not really know, or ever cared to know, what the so fondly named , - Ponzy scheme, besides by any other, really means.
The following sample theoretical definitions of the referred modern concept, available in public domain, may helpfully throw some light:
“A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors.”
“A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator.”
Also , that should be of ‘informative value’ who , whether in any way concerned, or having no concern, but wish to be, out of sheer curiosity if nothing else, wary of how , unimaginably, deep rooted and abysmally and intricately complicated those are.

Vaibhav Dhoka

1 year ago

The committee should direct concerned department to attach all properties of chairman directors and their family members till the amount is returned in full plus criminal action with immediate effect.

CBDT installs structure for taxpayer services
New Delhi : India's Income Tax department has set up a dedicated structure for delivery and monitoring of taxpayer services, an official statement said on Monday.
 
Two separate directorates, the Directorate of Tax Payer Services I (TPS-I) and Directorate of Tax Payer Services II (TPS-II), have been set up by the Central Board of Direct Taxes (CBDT), a finance ministry statement here said.
 
"Member (Revenue and Tax payer services) will oversee the delivery and monitoring of taxpayer services in the CBDT," it said.
 
"These Directorates will be responsible for delivery and monitoring of taxpayers services in the field offices and e-services deliverable through various electronic platforms of the Department," it added.
 
The responsibility for delivery of taxpayer services has also been specifically assigned at every level in the field offices, the ministry said.
 
The creation of this structure will satisfy some of the most significant suggestions of the Tax Administration Reforms Commission's (TARC).
 
The statement said that with this initiative, the CBDT expects a major reduction in taxpayer grievances and their increased satisfaction.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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T20 World cup: Iconic Eden Gardens brings in hi-tech to tackle rain threat
Kolkata : Come April 3, an expected full house of 65,000 would scream their lungs out in the World Twenty 20 final at a greener and prettier Eden Gardens, with a revamped drainage system which promises to rid the iconic cricket venue of its perennial water-logging problem.
 
Every cricketer who has played at the Eden agrees his cricketing experience would have been incomplete without a game at this ground. Many say it is cricket's answer to the Colosseum, the historic ampitheatre in Rome.
 
"It's a very special ground. It feels great (to play there)," India's former stylish bat V V S Laxman has said time and again, echoing the sentiments of scores of other players.
 
The stadium held its maiden Test match -- only the second on Indian soil -- in 1934 as India took on England. Eden's crowning glory came in 1987 when it hosted the World Cup final that was won by Australia before a 95,000-strong crowd.
 
Ex-Bengal captain Raju Mukherjee, who has authored a book on the historic venue, says greatness of Eden Gardens lies in the people who come to watch.
 
"The beauty of Eden lies in its crowd and the turf. It is the crowd that draws the biggest cricketers from the world over. They have reduced the capacity considerably from 100,000 to 65,000 now, but it is still a massive crowd and together they can take the roof off," Mukherjee told IANS.
 
However, eyebrows were raised when the International Cricket Council (ICC) announced that Eden would host the final of the World Twenty 20. It has been a historic venue no doubt, but what if it rains?
 
And the doubting Thomases did have a case.
 
On two previous occasions when it rained in the city on match days, games at the Eden Gardens were washed out.
 
In the Indian Premier League (IPL) edition eighth match between Kolkata Knight Riders and Rajasthan Royals as well as the T20 international between India and South Africa last year in October, not a ball could be bowled.
 
But the Cricket Association of Bengal claims rain can no more play spoilsport. With its new president Sourav Ganguly leading from the front, the CAB mandarins have been working overtime to better the drainage system.
 
"We had brought in a company from Delhi to look into the problem of ground water-logging.
 
"Then we followed instructions of (BCCI pitch curator) Daljit Singh and we worked as a team with Ashish Bhowmick (East Zone curator), Sujan Mukherjee (Eden Gardens curator) and me. We did the deep coring which was of prime importance." CAB ground committee head Debabrata Das told IANS.
 
"If it rains for even four hours now, the water will drain out in 20 minutes. Only a flood can stop Eden Gardens from having a game," assured Das.
 
The last time, when rain hampered play here, the then pitch curator Prabir Mukherjee had stated that there weren't enough covers to be laid across the ground. But now, over four months after the debacle, Eden is equipped with all the modern amenities.
 
"We have brought in machines which can absorb water that is left on the pitch cover. We have all the modern equipment which are necessary now, including zero-point grass cutters and four super soppers," Das stated.
 
"We also now have a brand new pitch cover which is inflatable and can be rolled up easily. Modern see-through ground covers are also on their way," he added.
 
However, Mukherjee struck a note of caution. "Can man fight nature? No stadium in the world can say we are 100 percent equipped to handle heavy rain. Do you know One-Dayers were invented because Test matches were being rained out?"
 
On the outfield, the difference is all visible. Sprinklers were watering the ground just as in hockey fields. The ground never looked greener. Workers were busy painting the steel and iron frames around the ground.
 
"We have looked into every nook and corner of the field. We are working under the supervision of Sourav Ganguly. He is deeply involved in all the work that is being done. There is no scope for a mistake," said Das.
 
The ground has also got a brand new electronic scoreboard and giant screen. Outside, just on top of the main entrance, two huge pictures have been put up.
 
One shows former ICC president Jagmohan Dalmiya presenting the World Cup to Australian skipper Steve Waugh and the other features veteran Indian women cricketer Jhulan Goswami.
 
It was 29 years back that Eden hosted a world Cup final. CAB joint secretary Anu Dutta insists the stadium is ready for the big day.
 
"Yes, we have got a few changes here and there.We will be putting up the scoreboard in a few days' time. But rest assured, we are ready for hosting the matches of the World T20," Dutta said, referring to the final and the three other WT20 games slated to be played on Eden's hallowed surface.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Agyat Vyakti

1 year ago

Off the topic. This is just for awareness.. Qnet and MLM are using friends and relatives to dupe you... You may like to read Qnet modus operandi with screen shots and facts and how to avoid them here ... Please share for public interest.. Qnet Scam in India .. http://qnetindiascam.blogspot.in/

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