PACL group chairman Nirmal Singh Bhangoo, three others arrested
Moneylife Digital Team 08 January 2016
The CBI has arrested four officials of PACL including its CMD, MD, and two executive directors in the Rs45,000 crore scam
 
The Central Bureau of Investigation (CBI) on Friday arrested four officials of PACL (earlier Pearls Agrotech corp), 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 Rs45,000 crore collective investment scam. 
 
Last month, market regulator Securities and Exchange Board of India (SEBI), as part of its recovery proceedings, had attached all bank and demat accounts, mutual fund portfolios of PACL Ltd 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.
 
SEBI said, the recovery proceedings have been initiated for their failure to comply with its order issued on 22 August 2014 directing, PACL and its directors and promoters to wind up the schemes, and refund Rs49,100 crore to the investors within three months from the date of the order. 
 
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. 
 
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.
 
The mobilisation of funds by PACL traces back prior to 1997. Upon receipt of a complaint, SEBI on 30 November 1999 and 10 December 1999 issued letters asking PACL to comply with the provisions of the collective investment scheme (CIS) Regulations. 
 
PACL challenged these letters before the High Court of Rajasthan in December 1999, claiming that its scheme does not fall under the definition of CIS as defined under the CIS Regulation and SEBI Act. PACL also challenged the constitutional validity of the CIS Regulations. 
 
The Rajasthan High Court on 28 November 2003, held that PACL's schemes were not CIS as defined under Section 11AA of the SEBI Act. The HC also quashed SEBI's letters issued to PACL.
 
SEBI filed an appeal before the Supreme Court against the order of Rajasthan HC. The SC on 25 February 2013, while allowing the appeal upheld the constitutional validity of CIS Regulations, and directed SEBI to investigate the matter and take appropriate actions. 
 
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.
 
Comments
Sukhvir singh
3 years ago
I am pacl (sabie ) hu money rifand (u390240800)
Dignesh Bhatt
4 years ago
Champcash is a fake company they r asking for 1 time investment aftr 15days of joining pls go to dashboard n refer FAQ for detail,
Albert
5 years ago
Albert
5 years ago
My want business yes
ashish kamat
5 years ago
Hi
ashish kamat
5 years ago
Hi
ashish kamat
5 years ago
Hi
Bhavana Jain
5 years ago
What are the regulations required to run a apps download company like champcash. There i no money rotation involved in it as company is paid for apps downloads and in turn distribute the portion to its users.
Dignesh Bhatt
Replied to Bhavana Jain comment 4 years ago
Champcash is a fake company they r asking for 1 time investment aftr 15days of joining pls go to dashboard n refer FAQ for detail
Lindy Nquma
5 years ago
I think I like everything I read about you can't wait to be part of the family
Dignesh Bhatt
Replied to Lindy Nquma comment 4 years ago
Champcash is a fake company they r asking for 1 time investment aftr 15days of joining pls go to dashboard n refer FAQ for detail
PPM
6 years ago
I am really surprised about the people who had invested in PACL and asking the government to get the money back.

- Did they check the authenticity of the company before investing?

I am sure most of the investors of PACL did not even read the application form and they put the money based on the advise of the agents.

One question, suppose the PACL investors make big money out of it, will they give it to GOI?

In my opinion, investors are responsible for their actions and GOI (SEBI) can only check for the systemic faults. That too, going by the experience of SEBI (since 1992), will not do any thing against the scamsters, rather SEBI support them.

SEBI will close the barn only after all the cattle left. SEBI do not want small investors to invest in the market and will do any thing to shoo away the retail investors.
Sangram Rath
6 years ago
what is the next procedure...how we get oyr money?
Subramani P K
6 years ago
This type of cheats should not be let out on bail and all their properties should be confiscated forth with and action taken to return the dues to the investors. They would have transferred all the money collected to binami a/cs and all that should be traced & the money deposited in such accounts also confiscated without delay. It has already taken from 1997 till 2015 to find out the fraud & recovery and further delay will jeopardize the settlement of claims.
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