Twitter
Advertisement

Ponzi scam: Rs 5,000 crore Pearls properties to be liquidated

CBI officials also told dna that funds to the tune of Rs 108 crore, currently in possession of the honourable court, will be transferred to the bank account of Securities and Exchange Board of India (SEBI).

Latest News
article-main
FacebookTwitterWhatsappLinkedin

In a major relief to investors in the Rs 45,000-crore ponzi scheme involving promoters of Chandigarh-based Pearls Group, the Central Bureau of Investigation on Friday started handing over the documents of prime properties of the company to a SEBI panel, appointed by the Supreme Court. According to agency sources, the properties belonging to Pearls Agrotech Corporation Ltd (PACL) are worth around Rs 5,000 crore and will be liquidated to refund the customers.

CBI officials also told dna that funds to the tune of Rs 108 crore, currently in possession of the honourable court, will be transferred to the bank account of Securities and Exchange Board of India (SEBI). Furthermore, documents of as many as 79 luxury cars were also handed over to the SEBI committee. The cars belonged to promoters of the accused companies, and will be auctioned in the coming days.

While the estimated worth of the cars is yet to be calculated by the agency, investors expect quite a sum from the auction, given the fact that the seized vehicles include brands like Rolls Royce, Porsche Cayenne, Bentley, Jaguar and BMW7 series.

The Supreme Court had appointed a committee under former chief justice RM Lodha to sell the assets of Pearls Agrotech Corporation Ltd (PACL) and refund Rs 45,000 crore to the affected investors. In a typical ponzi scam, belief in the success of a non-existent enterprise is fostered by quick returns to the first investors from money invested by later ones. While schemers may start by taking Rs 1,000 from investors, promising to double it within a month, the amount taken in this case was a massive one.

Even though the first installment of money being returned to the investors comes no where close to the actual loss of Rs 45,000 crore, the move will largely be seen as a step forward in one of the largest ponzi schemes witnessed by the country. Among the people allegedly involved in the scam, include promoters of two real estate firms – Pearl Agrotech Corporation Ltd and Pearls Golden Forest Ltd – whose top executives were arrested by the probe agency in January this year. The Supreme Court bench headed by Anil R. Dave had ordered the CBI to handover the documents including title deeds of PACL properties to SEBI.

The managing director of Pearls Group, Nirmal Singh Bhangoo, and three others were arrested by the CBI on January 9. Apart from Bhangoo and the ex-chairman of Pearls Australasia Pty Ltd, the other three arrested are Sukhdev Singh, MD and promoter-director (PACL); Gurmeet Singh, executive director (finance) and Subrata Bhattacharya, executive director in PGF/PACL.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement