1. Sebi moves SC against fresh PACL plea in Rajasthan HC

Sebi moves SC against fresh PACL plea in Rajasthan HC

SAT had upheld regulator’s order to wind up firm’s CIS

By: | Published: November 6, 2015 12:37 AM

The Securities and Exchange Board of India (Sebi) on Thursday approached the Supreme Court seeking transfer of a fresh plea filed by PACL from the Rajasthan High Court to the apex court.

Sebi has alleged that while PACL and its promoters had moved the Supreme Court against SAT’s August 12 order that directed it to refund close to over Rs 44,376 crore that it collected from around 58.5 million customers and winding up of its collective investment schemes (CIS), the real estate firm on October 12 again moved the Rajasthan HC seeking a direction to Sebi to register its CIS and for release of its sale deeds to enable it sell properties to raise money.

According to the market watchdog, the petition filed by PACL before the HC last month “is yet another attempt by it to continue its CIS, which have been found to be contrary to and unsustainable in law”.

It is another attempt on PACL’s part to delay and stall the implementation of Sebi orders that directed the company to wind up its CIS, the transfer petition filed by Sebi through counsel Pratap Venugopal stated. He further added that the petition pending before the HC should be transferrred to the SC “to avoid conflicting judgments that will adversely affect and jeopardise the interest of investors”.

According to Sebi, the purpose of regulating entities running CIS is to protect the interest of gullible investors who have lost or are likely to lose their life savings by the misdeeds of unscrupulous elements and fly-by-night operators.

“However, instead of complying with the statutory obligations, PACL has rushed to the HC… seeking at this point of time registration of its collective investment schemes under the CIS Regulations, which is impermissible and contrary to the said regulations,” Sebi said. The money was allegedly collected by Nirmal Singh Bhangoo-managed group via its two companies — PACL and Pearls Golden Forest — in ponzi schemes under the garb of sale and development of farm land.

On August 22 last year, Sebi had asked PACL to wind up its schemes and refund the money collected from investors as the CIS run by it was in violation of the Securities and Exchange Board of India Collective Investment Scheme Regulations, 1999 (CIS Regulations). This was challenged by the company before the SAT, which upheld the Sebi order.

The apex court had earlier appointed a special committee to probe other companies of the Pearl Group and had also cleared the decks for sale of more than 10,000 properties of the group’s companies spread across states like Punjab, Haryana, Rajasthan and Delhi.

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Tags: Sebi
  1. M
    mayur
    Jan 31, 2016 at 1:16 pm
    Mera retanmacty 2sal ho a par pacl ne abhi tak paise nahi lotayehe. Tomuje seb me complaint dalna he pacl ke khilaaf complaine dalna he to kya karu. Helpme
    Reply
    1. M
      mayur
      Jan 31, 2016 at 1:09 pm
      Pacl. Coustmar ka paisa kab lotayegi kyuki. 2 sal ho a he retane matchurete ke plese helpe me
      Reply
      1. S
        SHIVAKUMAR G
        Nov 28, 2015 at 5:10 am
        ON THE DATE OF 30/11/2015 PACL LTD'S ALL CASES IN SUPREM COURT. I KINDLY REQUESTING TO HON'BLE COURT , PLEASE ORDER TO PACL LTD FOR REFUND OUR HARD SAVEING MONEY FROM PACL
        Reply
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          Benny Stephan
          Nov 7, 2015 at 8:30 am
          This case has been running for more than 17 years. This tells us the legal proceedings in India is the slowest across the globe. The number of hearing that takes places in a year for any case in High court or Supreme court of India is like 2 or 3 and due to this it takes decades to close any case. The High court and Supreme Court of India is not thinking about the 58.5 million customers affected. The companies like Pacl India Limited are taking advantage because of this delay in the legal proceedings caused by the High court and Supreme court of India. Pacl has again approached Rajasthan High court to get the schemes registered under CIS from SEBI. Pacl India Limited is also not thinking about the customer as they keep approaching High Court and Supreme court of India to delay the Outcome of the case. The regulators SEBI after 1990s now realize in 2013 that they need to work. In August 2014, SEBI orders Pacl to refund the returns to the customer within 3 months and then to close the business operations in 15 days. Pacl India Limited waits for almost 3 months and they approach SAT. The regulator SAT takes another 1 year to understand the situation. On 12 August 2015, SAT decides to move in favour of SEBI and orders Pacl to refund the returns to the customer within 3 months and then to close the business operations in 15 days. In October 2015, Pacl India Limited waits for almost 3 months and then approaches the Rajasthan High court to get the schemes registered under CIS from SEBI. SEBI has now requested High court to transfer the pending peion to Supreme court to avoid conflicting judgments that will adversely affect and jeopardise the interest of investors. I guess SEBI will get another decade to sleep. As a customer, I have visited Pacl India Limited several times requesting for the refund of the returns and every time I was told that the Bank accounts of Pacl India Limited is freezed due to which they cannot refund the returns of the customers. I contacted CBI Delhi and they gave made a very diplomatic statement without even checking the details of the case, "The Bank accounts of the company will be released only once the case is closed." I contacted SEBI customer care several times and I was informed that Pacl India Limited needs to refund the returns before 12 November 2015 and SEBI will take any necessary action post 12 November 2015. When I ask SEBI about the current investigation, they tell me to get the detailed information pertaining to the current investigation you need to send an email to I have send several emails to SEBI and they have not even replied to any one of the email. SEBI has also told me to send a letter to SEBI's nearest office if they Pacl do not refund the returns before November 12, 2015. I am sure SEBI can sell the letters in s. I have also registered a complaint on SEBI's portal SCORES and I have not even received any acknowledgement for the complaint. I have also registered a grievance on our Prime Minister Narendra Modi's portal. I received an acknowledgement stating that the grievance has been closed and the matter has been forwarded to CBI. Its clear that even the government does not care about 58.5 million customer. A grievance should not be closed until the grievance of the customer has been resolved. It was easy for the current government to close the grievance by just sending an acknowledgement showing that they have addressed the grievance by forwarding the grievance to CBI. Pacl India Limited informed the customers for almost last months that they have an hearing with CBI in the high court to release their bank accounts, post which they will start refunding the returns. I contacted SEBI and they are telling me that we are not aware of what has happend yesterday in the High court as we give very limited support. If you need any further detail, please send an email I contacted CBI Delhi. They told me to first contact the crime section and then contact 2 or 3 other numbers and then they told me to contact th Spokesperson of CBI and she tells me that she cannot give me any information pertaining to the case, as she is only hired to give details to Media. On November 05, 2015 another agent of Pacl comitted suicide due to not receiving the returns from Pacl. So many incidents have taken place and still the High court, Supreme court of India, SEBI, SAT, CBI and our Prime Minister have not taken any mesaures to help the customer get the returns from the Pacl India Limited.
          Reply
          1. B
            Benny Stephan
            Nov 7, 2015 at 8:33 am
            This case has been running for more than 17 years. This tells us the legal proceedings in India is the slowest across the globe. The number of hearing that takes places in a year for any case in High court or Supreme court of India is like 2 or 3 and due to this it takes decades to close any case. The High court and Supreme Court of India is not thinking about the 58.5 million customers affected. The companies like Pacl India Limited are taking advantage because of this delay in the legal proceedings caused by the High court and Supreme court of India. Pacl has again approached Rajasthan High court to get the schemes registered under cis from Sebi. Pacl India Limited is also not thinking about the customer as they keep approaching High Court and Supreme court of India to delay the Outcome of the case. The regulators Sebi after 1990s now realize in 2013 that they need to work. In August 2014, Sebi orders Pacl to refund the returns to the customer within 3 months and then to close the business operations in 15 days. Pacl India Limited waits for almost 3 months and they approach Sat. The regulator Sat takes another 1 year to understand the situation. On 12 August 2015, Sat decides to move in favour of SEBI and orders Pacl to refund the returns to the customer within 3 months and then to close the business operations in 15 days. In October 2015, Pacl India Limited waits for almost 3 months and then approaches the Rajasthan High court to get the schemes registered under Cis from Sebi. Sebi has now requested High court to transfer the pending peion to Supreme court to avoid conflicting judgments that will adversely affect and jeopardise the interest of investors. I guess Sebi will get another decade to sleep. As a customer, I have visited Pacl India Limited several times requesting for the refund of the returns and every time I was told that the Bank accounts of Pacl India Limited is freezed due to which they cannot refund the returns of the customers. I contacted Cbi Delhi and they gave made a very diplomatic statement without even checking the details of the case, "The Bank accounts of the company will be released only once the case is closed." I contacted Sebi customer care several times and I was informed that Pacl India Limited needs to refund the returns before 12 November 2015 and Sebi will take any necessary action post 12 November 2015. When I ask Sebi about the current investigation, they tell me to get the detailed information pertaining to the current investigation you need to send an email to I have send several emails to Sebi and they have not even replied to any one of the email. Sebi has also told me to send a letter to Sebi's nearest office if they Pacl do not refund the returns before November 12, 2015. I am sure Sebi can sell the letters in s. I have also registered a complaint on Sebi's portal Scores and I have not even received any acknowledgement for the complaint. I have also registered a grievance on our Prime Minister Narendra Modi's portal. I received an acknowledgement stating that the grievance has been closed and the matter has been forwarded to Cbi. Its clear that even the government does not care about 58.5 million customer. A grievance should not be closed until the grievance of the customer has been resolved. It was easy for the current government to close the grievance by just sending an acknowledgement showing that they have addressed the grievance by forwarding the grievance to Cbi. Pacl India Limited informed the customers for almost last months that they have an hearing with Cbi in the high court to release their bank accounts, post which they will start refunding the returns. I contacted Sebi and they are telling me that we are not aware of what has happend yesterday in the High court as we give very limited support. If you need any further detail, please send an email I contacted cbi Delhi. They told me to first contact the crime section and then contact 2 or 3 other numbers and then they told me to contact th Spokesperson of Cbi and she tells me that she cannot give me any information pertaining to the case, as she is only hired to give details to Media. On November 05, 2015 another agent of Pacl comitted suicide due to not receiving the returns from Pacl. So many incidents have taken place and still the High court, Supreme court of India, Sebi, Sat, Cbi and our Prime Minister have not taken any mesaures to help the customer get the returns from the Pacl India Limited.
            Reply
            1. B
              Benny Stephan
              Nov 6, 2015 at 11:21 am
              Please view the link >>
              Reply
              1. B
                Benny Stephan
                Nov 11, 2015 at 5:21 pm
                According to the order from Sebi and Sat, pacl was ordered to refund the returns within 3 months. The order was dated 12 August 2015. Tomorrow 3 months will be completed, pacl has not started the refund at all. The company Pacl and the regulators Sebi and Sat has not helped the customers to get the refund and it seems the history will repeat again. It seems like Sebi is only interested to impose a fine of Rs7000 crore for their benefit even before ensuring that all the customers have got the promised returns. It seems like Sebi will get the Rs7000 crore no matter what happens to the customers of pacl.
                Reply
                1. B
                  Benny Stephan
                  Nov 6, 2015 at 11:21 am
                  Reply
                  1. N
                    Neeraj Sisodiya
                    Dec 27, 2015 at 3:57 pm
                    Dear sir, Please find the message. My policy no :U004187825 Mesority time : 18-6-2014 Please give me.my mony
                    Reply
                    1. S
                      Shri Ram
                      Dec 9, 2015 at 10:14 am
                      Why don't paying of customers payment , those majority of more.
                      Reply
                      1. S
                        Sandeep
                        Nov 8, 2015 at 4:14 pm
                        Pacl is mca,fm and sebi scam so they misleading investors please stop their scam drama.please sir please for indians investors.
                        Reply
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