The Securities &
Exchange Board of India (SEBI) has barred Delhi-based PACL, its promoters and
directors from raising any money from investors, effectively shutting down one
of India's largest collective investment schemes (CIS), with a corpus of about
Rs. 50,0000 crore. The securities market regulator SEBI has directed PACL to
refund investors their money along with interest within three (3) months.
SEBI on Friday also
said it would make a reference to the state government or / local police to
register a criminal case against PACL, its promoters & directors for
offences of fradu, cheating and criminal breach of trust . This is the
regulator's biggest crackdown on an investment scheme after Saradha scam.
PACL collected money
from depositors & invested in agricultural land across India. SEB said the
total number of PACL investors would be about 5.85 crore, including clients who
have been allotted land and those who are yet to be allotted land.
"Total amount
mobilised comes to a whooping Rs. 49,100 crore. This figure could have been
even more if PACL would have provided details of funds mobilised during April
1, 2012 to February 25, 2013. The collection of such huge funds suggests that
PACL has many more customers than the stated 1.22 crore,"SEBI said in its order.
The CBI has also
cases registered against the PACL Group & its promoters. SEBI said it would
also initiate prosecution proceedings under Section 24 of the Sebi Act against
the entity, its promoters and directors Mr. Tarlochan Singh, Mr. Sukhdev Singh,
Mr. Gurmeet Singh, Mr.Subrata Bhattacharya, Mr. Nirmal Singh Bhangoo, Mr. Tyger
Joginder, Mr.Anand Gurwant Singh and Mr.
Uppal Devinder Kumar among others.
The case dates back
to the nineties (1990) when SEBI first initiated action against the company but
it got stuck in legal hurdles. Last year (2013) in February, the Supreme Court
through an order remanded the matter back to SEBI and directed it to determine
whether the business of PACL fell under the category of collective investment
scheme. Based on its findings Sebi could initiate action in accordance with
law.
PACL mainly deals in
sale & purchase of agricultural land and its development. It was
represented by senior advocate Mr. Abhishek Manu Singhvi before the regulator.
PACL has the option of moving SAT against the SEBI order
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