Regulations
PACL: Suffering of investors and agent-investors continues
PACL’s small investors from remote districts are in a panic about their investments, as the company gives them a run-around; but SEBI recovery proceedings can begin only after 11 November 2015, as per SAT order
 
Lakhs of investors who put their hard earned money in PACL formerly Pearls Agrotech Corp Ltd, a collective investment scheme (CIS), are in a panic about the fate of their investment after the company has been ordered to refund their money. It may be recalled that this company has raised a whopping Rs49,000 crore from people across the country, claiming to have bought them a stake in land, like a land mutual fund. PACL has also used India’s slow legal system very effectively to delay regulatory action for several years, while it continued to collect money from people. In fact, it has doubled the money raised, even after Securities & Exchange Board of India (SEBI) began action against it.
 
The All India PACL (Pearls) Investors Association, on 13 October 2015, organised a protest-cum-meeting of investors in Parbhani district of Maharashtra. The Association, led by Rajan Kshirsagar, has started collecting applications forms from all investors in PACL, in order to send it to SEBI for further proceeding. Thousands of people from Parbhani district had invested thousands of rupees in PACL and all are now facing a severe financial crunch, which is magnified by the drought in the entire region.
 
During the meeting, it was decided to call for a protest before the Collector at Parbhani on 2nd November demanding action against PACL. The Association also demanded seizure all assets of PACL by SEBI for refunding money to investors. SEBI should algo create a lien on PACL assets in proportion of money invested by investors, SEBI should create a system to record complaints from investors in Parbhani district within next 15 days. "SEBI should also take action against other 95 companies barred from conducting similar CIS schemes," Kshirsagar said in a statement. 
 
Video recordings by the Association have stories about how people were convinced to become agents of PACL and have ended up persuading their family and friends to invest in the company. 
 
Sangita Jadhav, from Jintur taluka, personally invested Rs1 lakh in PACL. She also made several others to invest money in the CIS. Sangita says she joined PACL in 2009 and brought several people into the scheme. But her condition today is so bad that these investors are continuously asking her for refund of their money and she had to even keep her mobile handset switched off for most of the days as she has no answer. According to her, for more than two years, PACL told her that the company had filed a petition in High Court. "How many times, I can give next dates to people. Even thought people in the PACL office continue to give future dates whenever we ask for refund of our money," she says.
 
Sangita says, "About 30 people from my village had invested money in PACL. The company stopped paying us since October-November 2013. The bonds, which I submitted for redemption in November 2013, are still unpaid. All investors are now thinking about taking out a morcha to SEBI and seek refund of our money.”  
 
 
Another investor-cum-agent, Sudhakar Kshetre, says since he was unemployed, he joined PACL in 2007. "PACL had lot of expectations (from us) and since there was no other job available, I started working for them. From then, I made my relatives, friends and other people to invest about Rs10 lakh in PACL. This is apart from my own investment of around Rs30-40,000," he says.
 
"These people are harassing me for getting their money back. They say we invested money since you asked us to do so and since we do not know the company, you pay back (the money). 'You came to our house seeking money, now, you pay it back' is what people are telling me. Some people are even threatening to commit suicide in front of my doors. But I think, unless we all investors come together and take our case before SEBI, no money would come from PACL," Kshetre added.
 
 
Market regulator SEBI, the Securities Appellate Tribunal (SAT) and the Supreme Court have all ruled in favour of investors and directed PACL to refund money. SEBI, in a welcome move has started collecting applications or letters from all investors of PACL, both online and offline and sending it to the company for redressal. As per the order from SAT, the recovery proceedings can be initiated only after 11 November 2015, and till that time, investors will have to only wait.
 
If this is the situation in one small and remote district of Maharashtra, the plight of investors across India can only be imagined. Moneylife Foundation had written to SEBI asking it to create a separate email or format for PACL investors to lodge their grievances, especially since many are not very literate and are clueless about SEBI and the online complaint filing process of SCORES. 
 
Hopefully, other organisations and activists will be able to help people in the process. Moneylife Foundation has said that it will be happy to work with SHGs and NGOs around the country to collate information in various languages and forward it to SEBI. Those who need its help may contact [email protected] .
 
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COMMENTS

Benny Stephan

1 year ago

The regulators Sebi, Sat, RBI and MCA has not implemented any mechanism to refund the returns to the millions affected by ponzi schemes. The government has done nothing to help the customer's either.

Benny Stephan

1 year ago

The regulators Sebi, Sat, RBI and MCA has not implemented any mechanism to refund the returns to the millions affected by ponzi schemes. The government has done nothing to help the customer's either.

Benny Stephan

1 year ago

The regulators Sebi, Sat, RBI and MCA has not implemented any mechanism to refund the returns to the millions affected by ponzi schemes. The government has done nothing to help the customer's either.

Benny Stephan

1 year ago

The regulators Sebi, Sat, RBI and MCA has not implemented any mechanism to refund the returns to the millions affected by ponzi schemes. The government has done nothing to help the customer's either.

Benny Stephan

1 year ago

ple have invested their life time savings and more than 5 million people have already waited for 9 years to get the refund. People had committed suicide after not receiving the returns from Pacl India Limited. This legal proceedings against Pacl India Limited has been running for almost 20 years, first in high court and now in supreme court. The regulators of India Sebi and Sat are also of no help, they wasted so much time because of not implementing effective rules to stop so callrd ponzi schemes by various companies. I contacted sebi and they are still giving the same update where Sat ordered pacl to refund the returns before November 12, 2015. Sat also wasted 1 year to decide that the stand of Sebi is right. Why do regulators of India waste so much time.
RBI, MCA are equally responsible for not implementing efficient ways to curbe these so called ponzi schemes.
The politician are everywhere. Pacl Ibdia Limited had managed to get stay order from court to delay the proceedings of this case with the help of some politicians.
Pacl India Limited is equally responsible for taking advantage of inefficient judicial system and corruption in India.
It seems like the entire system is corrupt and slow.
90% of politicians are criminals in India. They have either committed some sort of crime like theft, murder, scams and so on. Its time that we realize this and may be a suggestion that we should keep some sort of entrance exam for selecting deserving candidates for each party. No criminals should be allowed to even participate in this exam. Instead put all the criminals in jail and clean corruption and criminals in India.
Its been almost 20 years, I don't know if this is the emotion in me, but I am very disappointed by this slow proceedings in every case in. India.
Will I ever get my money?
When will get the money?
Can anyone answer this questions?
Is there an answer in our system.

PPM

2 years ago

Only in India, this type of scam can happen..a real banana republic of mango men.


All our regulators are busy in keeping the small investors away from the legal investment avenues like Mutual Funds as they micro manage the Mutual Fund investments with so many regulations.

SEBI will always support the scamsters like Sahara, PACL, Saradha group.

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