Sebi cautions public against dealing in PACL properties

According to the Securities and Exchange Board of India (Sebi), PACL collected more than Rs 60,000 crore through illegal collective investment schemes (CIS) over a period of 18 years.

Sebi cautions public against dealing in PACL properties
Sebi had asked PACL, as also its promoters and directors, to refund the money in an order dated August 22, 2014.

A Sebi-panel on Monday cautioned the public against dealing in the properties of PACL Group and its subsidiaries, saying no one has been authorised to sell the properties. PACL, also known as Pearl Group, had raised money from the public in the name of agriculture and real estate businesses.

According to the Securities and Exchange Board of India (Sebi), PACL collected more than Rs 60,000 crore through illegal collective investment schemes (CIS) over a period of 18 years.

A committee, headed by former Chief Justice of India R M Lodha, is overseeing the process of disposing of properties to refund investors after verifying their genuineness. It has already initiated the process of refund in phases. The panel was set up by Sebi in 2016 following a Supreme Court order.

The fresh advisory came after the committee noticed that an authority letter purportedly issued on behalf of nodal officer cum secretary of the committee, authorizing one Harvinder Singh Bhangoo to sell the properties of PACL in Karnataka is in circulation.

It has been clarified that the committee has not authorised any individual or entity much less Bhangoo, to sell the properties of PACL Ltd as falsely asserted in the foregoing authority letter, or at all, according to a statement issued on Sebi’s website. It, further, said that any attempt by individuals or entities to illegally and unauthorisedly take possession of the properties of PACL will invite strict action.

In view of this, the panel has cautioned the public at large against “buying and/or dealing with the properties of PACL or properties wherein PACL Ltd or any of its associates/subsidiaries have any interest/right, directly or indirectly.” In December 2015, Sebi had ordered attachment of all assets of PACL and its nine promoters and directors for their failure to refund the money due to investors.

Sebi had asked PACL, as also its promoters and directors, to refund the money in an order dated August 22, 2014. The defaulters were directed to wind up the schemes and refund money to the investors within three months from the date of the order.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos