SEBI attaches assets of Pearls Agro over Rs 60,000 cr default

Sanjeev Sharma

Tribune News Service

New Delhi, December 14

In one of the biggest recovery proceedings ever against a defaulter for illegal mobilisation of public funds, the Securities and Exchange Board of India (SEBI) today issued an order attaching the assets of PACL Ltd, also known as Pearls Agro,  and its promoters and directors for its failure to refund nearly Rs 60,000 crore to more than 5 crore investors.

In its order issued today, SEBI said PACL had raised Rs 49,100 crore from nearly 5 crore investors that it was asked to refund along with promised returns, interest payout and other charges, which take the total amount due to more than Rs 55,000 crore. SEBI has attached all bank and demat accounts and mutual funds folios of the defaulters with immediate effect. 

PACL was operating schemes where money was pooled in from investors who were promised a return.  SEBI had earlier rejected the claim by PACL that it was more of a land developer.

SEBI did not find merit in the arguments and said  no transfer of property took place.

The recovery proceedings have been initiated against PACL Ltd, as also its promoters and directors – Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Nirmal Singh Bhangoo, Tyger Joginder, Gurnam Singh, Anand Gurwant Singh and Uppal Devinder Kumar.