Enforcement Directorate searches PACL premises in multiple cities

NEW DELHI: Tightening the noose around Pearls group promoter Nirmal Singh Bhangoo, the Enforcement Directorate (ED) carried out raids at multiple locations on Wednesday morning for allegedly duping investors of more than Rs 45,000 crore.

ED raids comes more than a year after the CBI registered a case against PACL group for using fraudulent schemes where the group collected money from investors through unauthorised collective investment schemes in the name of real estate projects. It is also said to have been involved in agriculture land related schemes.

The group also includes companies like Pearls Agrotech Corporation Limited and Pearls Golden Forest Limited (PGFL), Bhangoo, who is believed to be close to the Punjab government and has close ties with influential people in the state, however managed to avoid properties being confiscated with CBI going slow in the probe. The company had also approached SC, which has not granted any stay on the matter. After hearing another plea earlier in 2013, the apex court had directed Sebi to probe the matter involving PACL’s fund-collection schemes and take appropriate actions. In a parallel development agencies have reported that Bhangoo has also approached the Securities Appellate Tribunal against Sebi’s recovery proceedings.

It is alleged that PACL had raised Rs 49,100 crore from nearly 5 crore investors that it needs to refund along with promised returns, interest payout and other charges, which takes the total amount due to more than Rs 55,000 crore.