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PACL Scam: ED Raids Illegal Occupants of Property in Jaipur, Seizes Evidence
Moneylife Digital Team 28 April 2025
Economy & Nation
The Delhi zonal office of the directorate of enforcement (ED) has conducted a major search operation at Jaipur in Rajasthan, targeting properties linked to the PACL investment fraud case. The action, carried out on 26 April 2025, falls under the Prevention of Money Laundering Act (PMLA), 2002.
 
ED initiated the investigation based on a first information report (FIR) registered by the banking and securities fraud cell (BSFC) of central bureau of investigation (CBI) in New Delhi under sections 120-B and 420 of the Indian Penal Code (IPC), implicating PACL India Ltd, PGF Ltd, late Nirmal Singh Bhangoo and others. The agency alleges that the companies and their directors operated fraudulent investment schemes, deceiving investors and siphoning off about Rs48,000 crore.
 
The search revealed that Shravan Singh Chauhan, Indra Singh and their associates had been illegally occupying a PACL-owned property since 2017. They allegedly used the premises to run Cavallo Riding and Polo Club, a commercial venture, generating illicit revenues and further misappropriating proceeds of crime derived from the PACL fraud which has affected investors across India.
 
Officials seized incriminating digital evidence and a luxury car owned by one of the illegal occupants during the operation.
 
 
ED says it is coordinating with other law enforcement agencies to file criminal cases against those involved.
 
The PACL fraud case is considered one of India’s largest financial scams, with lakhs of investors allegedly defrauded through deceitful investment schemes.
 
In February 2019, a committee headed by retired justice (retd) RM Lodha, which is supervising the Supreme Court (SC)-ordered process of selling PACL's assets, initiated the process of refunds in phases for investors who had invested in PACL.  PACL (or Pearls) is one of the largest Ponzi schemes in India which had been allowed to run for decades, amassing over Rs60,000 crore. The committee asked PACL investors to submit online applications for refunds. 
 
The Lodha committee has been processing applications received from investors in a phased manner, slab-wise and, currently, applications with claim amount up to Rs10,000 have been processed and payments have been made in respect of eligible claim applications.
 
The documents uploaded by the PACL investors are verified and then payment amount is calculated, applications processed and, subsequently, payments are processed.
 
The mobilisation of funds by PACL goes back prior to 1997. On receipt of a complaint, Securities and Exchange Board of India (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.
 
In September 2018, ED filed a charge-sheet against PACL and its 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. ED, which started the probe after lodging an first information report (FIR) in 2015 based on the 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 thousand of his commission agents, were accused of cheating 55mn (million) investors on the pretext of the sale and development of agricultural 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.
 
You may also want to read our coverage on PACL scam here…
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