PACL Scam: SEBI asks investors not to handover documents, receipt to anyone
Cautioning investors of PACL Ltd (erstwhile Pearls), market regulator Securities and Exchange Board of India (SEBI) had asked them to retain all documents with himself or herself and not to share or handover it to anyone for any reason. SEBI said the Justice RM Lodha Committee appointed by the Supreme Court to dispose of properties of PACL and pay proceeds to investors has not authorised anyone to collect cheques, money or claim forms from investors. 
 
In a statement, SEBI said, "The (Justice RM Lodha) Committee is in receipt of complaints, whereby, it is learnt that certain individuals/associations are collecting money/ claim form under the guise of authorisation from the committee. In this regard, it is reiterated that committee has not authorised any person to collect any money or claim in any manner whatsoever, therefore investors may beware and are cautioned to not fall in the trap of any such news, report or advertisement."
 
Earlier on 27 November 2016, the market regulator, while informing the process to claim refund (for investors of PACL) made it clear that the refund would be initiated only upon realisation of a sizable amount by the Committee. It said, "In such case, investors would be required to file their claims only in the prescribed format upon specific notification by the Committee. Till such notification, investors are requested to retain their documents with themselves and not to part with them for any reason whatsoever."
 
The Lodha committee is supervising the Supreme Court ordered process of selling PACL's assets across the country and refunding Rs49,100 crore collected from over 56 crore investors.
 
The apex court in an order on 2 February 2016 set-up a committee headed by its former chief justice RM Lodha to sell assets of PACL to refund investors Rs49,000 crore collected through collective investment scheme that were held as illegal by market regulator SEBI.
 
Directing that no court in the country would entertain any plea in respect of the sale of PACL assets, the bench also restrained the PACL from going for any more investments from the public.
 
The court directed the committee to appoint experts to assists in the sale of land and directed the SEBI to appoint a nodal officer to for investor grievances.
 
The money to be refunded to the investors was allegedly collected by PACL and Pearls Golden Forest Limited - two companies belonging to Nirmal Singh Bhangoo-managed group - in the name of sale and development of agricultural land.
 
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COMMENTS

Sajjad Jamali

10 months ago

SIR I AMMAGNI U297072407 NOT SUBMITED

subhash sangliya

10 months ago

SHIVDANA RAM U191095893 7500 SY-6M 9983169204

Rajveer Chahar

10 months ago

My pacl documents provide me

kathir vel

10 months ago

I Am a already create the login but no attachment in documents how to re login in the id

Somender Yadav

10 months ago

@Arputha... Similar thing try did to my poor domestic help.
Please if someone knows
1. What to do
2. Whom to approach to get refund

Kindly suggest as he is
Regards
Som

Arputha Sundari

10 months ago

We are already submitted our original documents in pacl branch...how will I claim our refund please suggest me

Sujan Raj

11 months ago

pls saggest to pacl application re carection pls saggest me

Rahul Bangar

11 months ago

galat form retun kise bare

Zubair Pasha

12 months ago

sir
my uncle has invested some money in pearls in 2014 pls suggest me where can i clime this amount

Somender Yadav

1 year ago

Does anyone know what is to do to initiate the refund please.. My domestic help informed me of getting duped by 50000 by PACL in context of doing bank deposit only o get land /plot registration request.

What is th first step I should suggest him, if any one can tell me .that will be a great help. Thnkxxx

Azhar Wani

1 year ago

Sir i think if honorable pm will help us to solve our issues its good for us

Madhav Joshi

1 year ago

When fd investors will get money back? What they are supposed to do to claim their fd from liquidator

GOPAL CHUTIA

1 year ago

We are all investors request to Honorable PM to take up the case immediately,
otherwise it will not possible to get good result.

S.G.S. MANI

2 years ago

This only possible to take care by Honourable PM' direct decision to PACL, otherwise it will not get good result to investors.
Also it needs urgent.

S.G.S. MANI

2 years ago

This only possible to take care by Honourable PM' direct decision to PACL, otherwise it will not get good result to investors.
Also it needs urgent.

Shut Up! You small shareholders
On 2 March 2017, an aggrieved minority shareholder of Raymond Limited, Vishal Patel, published an open letter in Business Standard, charging the promoters of frittering away the company’s money on personal luxuries. Raymond is controlled by a branch of the Singhania family which was a pre-eminent business family until the 1980s. Gautam Singhania, son of Vijaypat Singhania, who was also...
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SEBI bans RIL, 12 others from F&O for fraudulent trading; orders it to pay Rs1,000 crore
The Securities and Exchange Board of India (SEBI) last week banned Reliance Industries Ltd(RIL) and 12 others from equity derivatives trading for one year and directed the company to disgorge nearly Rs1,000 crore for alleged fraudulent trading in a 10-year-old case. RIL, in a statement stated that it will appeal and challenge SEBI order before the Securities Appellate Tribunal (SAT).
 
The ban, in effect from last Friday, relates to alleged fraudulent trading in the futures and options (F&O), or derivatives, space in the securities of RIL's former listed subsidiary Reliance Petroleum (RPL) - now merged with the listed parent. 
 
A stock is banned in F&O when its derivative contracts cross 95% of the market-wide position limit (MWPL).
 
The Mukesh Ambani-led RIL has been asked to pay Rs447 crore, which along with an annual interest of 12% since 29 November 2007, taking the total disgorgement liability for the company to nearly Rs1,000 crore. It has been asked to pay the amount in 45 days.
 
However, according to experts, the punitive action against RIL should have been stricter. Speaking with Business Standard, Shriram Subramanian, Managing Director of InGovern said, "SEBI needs to be more tough and proactive in such cases. It has taken almost 10 years to come out with this order, which doesn’t contain any penalty. This could set a wrong precedent for companies and market participants who brazenly violate regulations. Banning the company from the F&O segment will not have any impact on the company. Apart from the disgorgement amount, there has to be a penalty to serve as a deterrent to all market participants.”
 
The SEBI order, passed by whole-time Member G Mahalingam, said RIL and 12 other entities have been prohibited from dealing in the "equity derivatives in the F&O segment of stock exchanges, directly or indirectly".
 
According to SEBI order, 12 entities, Gujarat Petcoke and Petro Product Supply Pvt Ltd, Aarthik Commercials Pvt Ltd, LPG Infrastructure India Pvt Ltd, Relpol Plastic Products Pvt Ltd, Fine Tech Commercials Pvt Ltd, Pipeline Infrastructure India Pvt Ltd, Motech Software Pvt Ltd, Darshan Securities Pvt Ltd, Relogistics (India) Pvt Ltd, Relogistics (Rajasthan) Pvt Ltd, Vinamara Universal Traders Pvt Ltd, and Dharti Investment and Holdings Pvt Ltd were front entities of RIL. "As the investigation revealed that each of the Front entities of RIL had undertaken F&O transactions in the scrip of RPL under respective agreements with RIL, as stated earlier in this order and as RIL was its ultimate beneficiary, it was alleged that such agreements are benami contracts and therefore, illegal and invalid in terms of the Benami Transactions (Prohibition) Act, 1988. It was further alleged in the show cause notice (SCN) that such arrangements were part of a scheme / artifice intended to manipulate and/or defraud the market. It was alleged that the object of entering into such agreements and executing such trades was to avoid detection of the breach of the client- wise position limits in derivative contracts imposed by the SEBI and NSE circulars issued in this connection," the order says.
 
Mr Mahalingam from SEBI says, "I am inclined to pass certain directions against the notices in order to protect the interest of the investors and reinstall their faith in the regulatory system."
 
Quoting sources, the newspaper report says, SEBI had RIL with with violation of insider trading rules in its first show cause notice (SCN) issued in April 2009. Later, the market regulator issued another SCN in December 2010, superseding the earlier notices, in which the company was charged under violation of Fraudulent and Unfair Trade Practice (FUTP) regulations.

RS Loona, Senior Partner, DV Alliance, told the newspaper that "Under Section 11 (B) proceedings, there is no scope of monetary penalty. The penalty can be imposed only after adjudication and by the adjudication officer which is not the case here. One should also not mistake the charges against the entities with the insider trading breaches. The action was taken for violating unfair trade practices regulation which is mostly for price manipulation”.
 
RIL said it would appeal against SEBI's decision. "We are in the process of consulting our legal advisors. We propose to prefer an appeal and challenge the order in SAT. We remain confident of fully justifying the veracity of the transactions and vindicating our stand. We have full confidence in the judicial process and we propose to vigorously exercise all options available to us to challenge the untenable findings in the order," the company said.
 
The SEBI says, "Throughout its written and oral submissions, RIL has referred to its actions as 'hedging' to justify its elaborate scheme. The strategy of 'hedging', put forward as a defence by RIL is nothing but a mirage. While RIL has sought to depict a strategy of hedging, when one takes a closer look at what was actually done or intended to be done, the facade of hedge wanes off and exposes the hidden motive or strategy of speculation. It is now amply clear that the 'hedging' strategy is a defence set up as an after- thought and was not a pre-planned business strategy. To conclude, I find that RIL was not genuinely hedging the risk but was aiming to reap huge speculative profits by cornering futures positions and playing a fraud on the general investors and the market. RIL cornered the OI position to the extent of 61.5% as on 6 November 2007 and 40.13% as on 29 November 2007 and closed out the outstanding short position of 7.97 crore shares on 29 November 2007 through its agents. This would amount to a well-planned, fraudulent and manipulative trading scheme in terms of the SEBI (PFUTP) Regulations, 2003."
 
However, as per RIL the trades in RPL shares were genuine and SEBI appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions. "The trades in RPL shares which were examined by SEBI were genuine and bona fide transactions. These were carried out keeping the best interest of the company and its shareholders, in view," the company added.
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User

COMMENTS

Prem Prakash Chaubey

10 months ago

side link here

Sajjad Jamali

10 months ago

Sir custamer account in hard copy refund process

gopi J

10 months ago

I have already submitted our original certificate.how to apply refund process

Rai M

1 year ago

Hi sir
Kindly help to refund of my bond . I m suffer pacl office but there no response. My no 7985846172.

Onkarnath Adiga

2 years ago

RIL has small investors for a ride with impunity in past and will continue to do so in future without care for any regulatory authority like SEBI. They will bull dodge their way without much ado. Ambanis are too big to be under law of the land.

p venkateswara

2 years ago

no moral values in these companies, that is why they are shining.

V ganesan

2 years ago

ban f&o in india in the nse.For hedging purpose start a separate company similar to life insurance and health insurance and motor insurance.I f some body wants to hedge letthem go to that product. Recently nse added another 15 companies in F&o like suzlon reliance defence etc.These are very poor quality companies without fundamentals.My final conclusion Indian equity market and f& o market grown as a worst casino in the world.If it is not banned immediately in the nse it will have verybig social problem in future. It is worse than horse race and playing cards.

Freddie Movdawala

2 years ago

Unfair Trade Practices adopted by Company Directors in charge of running the Company and hence the Concerned Directors or officials must be personally Penalised. By Passing on the Penalty to the Company the Shareholders suffer a loss for decisions not involving them.

REPLY

kumarajaysingh

In Reply to Freddie Movdawala 1 year ago

[email protected] 9950321327 fraud in sebi itself

Gopalakrishnan T V

2 years ago

The need to protect the confidence of Investors is paramount and from this angle what SEBI has done is fully justifiable. The interests of Investors need to be hedged from the Fraudsters and having several front line Companies by the Reliance to have the transactions carried out is itself questionable. The registrar of Companies and the bankers also should be answerable for allowing Companies to come into existence without any KYC compliance and satisfying with reference to the Fit and Proper clause in respect of their Directors, Auditors and Chartered Accountants and lawyers . Reliance is a company capable of using, influence, contacts, and indulging in all kinds of fraudulent ways of doing things apparently within the parameters but definitely at variance with the letter and spirit behind the parameters. It is good that SEBI has taken a bold decision to Fix the Reliance for its wrong doings and fixed a penalty . The regulators everywhere are effective in enforcing the laws of the Country, the economy would be far better and the Investment climate would improve considerably. The erosion of ethics and values in the country is beyond any tolerable limit and the negative impact in doing business in India is something of very high order. SEBI has set a good precedence and other Regulators should also be in a position to be after the wrong doers . RBI needs to introspect and does something urgently to set right the banks for all their misdeeds which include the deteriorating Customer Service and fleecing of Customers to make up the ir losses on account of ballooning NPAs.

REPLY

kumarajaysingh

In Reply to Gopalakrishnan T V 1 year ago

[email protected] 9950321327 fraud in sebi itself

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