PACL: Investors to Get an Opportunity to Rectify Deficiencies in Applications
The Justice RM Lodha (retd) Committee appointed in the PACL Ltd matter has decided to allow investors or applicants with claims of up to Rs5000 to rectify deficiencies found in their applications. The Committee, however, has not given any date or more details about the rectification process. Moneylife would inform on this process when the Committee shares details. In addition, there is no word on allowing claims to be submitted by investors who could not file it by 31 July 2019.
 
In a release, market regulator Securities and Exchange Board of India (SEBI) says, the Justice Lodha Committee has paid refunds of up to Rs5000 to 2.77 lakh investors and applicants. This was the second refund process carried out during 8 February 2019 to 31 July 2019. 
 
However, it says, certain applications having claim amount up to Rs5,000 could not be processed further due to one or more deficiencies. (see below)
 
 
"The (Justice Lodha) Committee, from a date to be notified shortly, will provide an opportunity to all investors or applicants with claims up to Rs5,000 to make good deficiencies as may be applicable to their claims, so as to enable their claims to be processed," the release says.
 
Following regulatory action, investors were asked to submit refund claims for which the cut-off date was 31 July 2019. On 26 April 2019, the Justice Lodha committee, appointed by the Supreme Court (SC), in the PACL matter had decided to extend the last date for receiving claim applications till 31 July 2019. 
 
The Justice Lodha committee is supervising the SC-ordered process of selling PACL's assets across the country and refunding Rs49,100 crore collected from over 55 million investors.
 
Last year in September, the Enforcement Directorate (ED) had filed a charge-sheet against PACL and it chief Nirmal Singh Bhangoo in connection with a Ponzi scam involving over Rs49,100 crore, which was collected allegedly by two companies from millions of investors. The ED, which started the probe after lodging an first information report (FIR) in 2015 based on the Central Bureau of Investigation (CBI)'s case, had in January 2018 attached Australia-based assets of the Pearls group and Mr Bhangoo worth Rs472 crore. 
 
Mr Bhangoo, his companies PACL and Pearls Golden Forest Ltd (PGFL), as well as several thousands of his commission agents were accused of cheating 55 million investors on the pretext of sale and development of agriculture land.
 
The companies made false allotments of land to investors. However, the companies never owned any land in their own name.
 
Mr Bhangoo and his companies promised the investors that allotment would be done on their investment between 90 and 270 days and, if not, handsome returns would be paid.
 
The mobilisation of funds by PACL goes 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 an 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.
 
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    User

    COMMENTS

    Shivshankar Gupta

    4 days ago

    Who did not able to apply in July 2019 for refund.... Can they will apply in 2020....

    HIMANSHU AGGARWAL

    6 days ago

    I didn't get the refund credit. Please suggest what can be further steps?

    shekhar chander

    1 week ago

    ..

    shekhar chander

    1 week ago

    Can anyone let me know that will be get upto ₹5000 only? Is it the first half or thats the maximum
    amount for every single person?

    battula sridevi

    1 week ago

    Please understand the situation of agents and their families

    Dr Benoy Kumar Chattapadhyaya

    1 week ago

    What Lodha Commission done ? Why so delayed by SEBI ? Why Customer are not getting their Refund? So many year past Customer are suffering. Who will give this reply?

    REPLY

    Parvesh singh Yadav

    In Reply to Dr Benoy Kumar Chattapadhyaya 1 week ago

    My also not refundable amount so many year agon when we get Refunded amount

    Vaibhav Dhoka

    1 week ago

    It is because of multiple agencies and non co operation and sharing of information it is very easy to take public for ride,and as said we have rogue Jurisprudence system.

    Helpless PACL Investors Are Now Being Duped through Fraud Refund Messages
    Several desperate investors, who have lost money in PACL Ltd. are now receiving fraud messages about refunds that could dupe them all over again. These messages claim they are about providing a refund, but actually ask PACL investors to pay 10% of the claim amount as goods and services tax (GST). 
     
    We asked market regulator Securities and Exchange Board of India (SEBI) for a clarification. In an email reply, an official from SEBI says, "The (PACL) Committee has not sent such a message as highlighted in the trailing mail and it appears the message is not genuine."
     
    Our assessment also confirms that these messages are completely fraudulent and aimed at duping already aggrieved investors of PACL.
     
    This type of fraud, which aims to scam people, who are already victims of another scam is fairly common abroad. What is required is a communication exercise by the regulator to warn people in time. 
     
    The PACL fraud message that was shared by one of our readers says, "Please verifying your Genuine identity By making a Positive Response in order to verify your identity of Yours at [email protected] FROM the Phone Pe UPI SERVER.Only By Making A Consumer GST In the name of xxx." 
     
    "Go to the Phone Pe UPI app and make Positive Response of transaction BY Verifying Your identity. the amount would be settled in same time In the Account of xxxx. once we receive the verification.Amount of GST from the same bank account. please make a positive response from you and verifying the amount 24,978 INR Refundable. IN Order to receive your PACL Refund Compensation Amount 2,25,000 INR Same time. Please let us inform once you receive the amount so that we can close the case," the message reads. (this is the actual message shared verbatim.) 
     
     
    Firstly, all PACL investors seeking refunds have already submitted documents for identification and verification and shared their bank details. These investors would receive their refunds directly from the regulator, once cleared by the Justice RM Lodha (retd) committee, appointed by the Supreme Court (SC), in their valid bank accounts. There is no need to verify their details on any third-party UPI app. 
     
    What is more shocking is that instead of sending the claim amount the message, in fact, is asking the PACL investor to pay more money! 
     
    If an investor opens the Phone Pe app, fills the account details, and gives a 'positive response' (clicks Yes), then money from her account would immediately get deducted. This is a trap to extract money from the investor's account through UPI.   
     
    The digital payment platforms based on unified payments interface (UPI) allows user to pay money or receive money from other UPI users. This is called as push (pay) and pull (receive) transactions. In the above message, the PACL investor is being asked to pay money instead of receiving it. 
     
    If you receive such mails, do not pay any heed and simply mark it as 'spam' and press delete. 
     
    Following regulatory action, PACL investors were asked to submit refund claims for which the cut-off date was 31 July 2019. However, several investors are still pleading for an extension of time to submit their refund claims. PACL (or Pearls) is one of the largest Ponzi schemes in India which had been allowed to run for decades amassing over Rs49,000 crore. 
     
    The Justice Lodha committee is supervising the SC-ordered process of selling PACL's assets across the country and refunding Rs49,100 crore collected from over 55 million investors.
     
    Earlier, in August 2019, we reported how a Mumbai-based investment banking analyst lost Rs87,000 via UPI while buying three beers online. The analyst Radhika Parekh was requested to share her UPI ID for making a payment of Rs420 on Google Pay. After sharing her UPI ID, she received a request on Google Pay. The moment she accepted the request, Rs29001 were deducted from her account. She called the wine shop number where the answering person apologised and told her that the amount was deducted due to mistake. However, when she disconnected the call, another amount of Rs58,000 was deducted from her account.
     
     
    You may also want to read our extensive reports on PACL Scam… 
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    User

    COMMENTS

    Parvesh singh Yadav

    1 week ago

    I did not get Refunded amount to Pacl Agent please contact me

    REPLY

    Kali Raj

    In Reply to Parvesh singh Yadav 3 days ago

    When we will get the amount? (FD 50000/-duration period completed)

    CBI Arrests Pailan Group CMD in Rs574 cr Chit Fund Scam

    The Central Bureau of Investigation (CBI) here on Tuesday arrested Pailan Group's Chief Managing Director Apurba Kumar Saha in connection with Rs 574 crore chit fund scam.

    Saha had collected Rs 574 crore from investors under various fraudulent schemes on assurance of paying high returns on maturity. Shah fled the scene after cheating thousands and allegedly misappropriated the money, the CBI said.

    "The Pailan Group had collected approximately Rs 574 crore from the market through various chit fund schemes, assuring investors high rate of interest," a CBI official said.

    In August, the CBI had arrested Bipin Kumar Singh, director of the Pailan Group.

    The CBI had taken over the case from the West Bengal Police, which was probing the case following complaints by agents working in Saha's company in 2014.

    The Securities and Exchange Board of India (SEBI) in 2015 had barred two Pailan Group companies—Pailan Agro India and Pailan Park Development Authority—for illegally raising Rs 98 crore funds.

    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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