Sebi cautions public against dealing with PACL property
01 Aug 2016
The Securities and Exchange Board of India (Sebi) has cautioned public at large against dealing with any property where PACL, previously known as Pearls Agrotech Corporation Ltd, and its promoters have interests.
Sebi is taking efforts to recover Rs60,000 crore PACL has raised from investors in the name of agriculture and real estate businesses. These funds were collected from investors through illegal collective investment schemes over 18 years and these have to be refunded to investors.
Sebi has advised the public not to deal with any of the properties wherein PACL Ltd and / or its directors / promoters / agents / employees / group and / or associate companies directly or indirectly have any interest and if so they shall be dealing at their own risk, cost and consequences.
Sebi's latest move follows a recent Supreme Court order that restrained PACL and its promoters, among others, from alienating any of their properties, both within and outside India.
The Supreme Court of India has, in its order dated 25 July, inter-alia restrained PACL Ltd and / or its directors / promoters / agents / employees / group and / or associate companies selling / transferring / alienating any of the properties wherein PACL Ltd has, in any manner, a right / interest, situated either within or outside India.
The market regulator has initiated the sale process for the attached assets of the PACL group.
Last December, Sebi had ordered attachment of all assets of PACL and its nine promoters and directors for their failure to refund more than Rs60,000 crore due to investors - the biggest amount for any such case.
As per Sebi order, PACL had raised Rs49,100 crore from nearly five crore investors that it needs to refund along with promised returns, interest payout and other charges, which took the total amount due to over Rs55,000 crore.
Besides, PACL group firm PGFL ''illegally mobilised more than Rs5,000 crore and failed to refund the money in spite of directions of Sebi and SAT'', the regulator had said, while initiating the recovery proceedings.