E-Paper
Submit work estimates for Mohali’s Pearl City within month, Supreme Court tells GMADA
GMADA said it would carry out internal development work in the Mohali housing society if given funds; the work was left incomplete when the realty firm’s chairman was booked by CBI in a ₹45,000 crore Ponzi scam
In a relief to around 1,300 allottees of Pearl City, Mohali, the Supreme Court has directed Greater Mohali Area Development Authority (GMADA) to prepare a detailed estimate plan for internal development works of Sectors 100 and 104 and submit the same within a month.
The fate of around 1,300 allottees of Pearl City has been hanging in balance since 2014 after its chairman-cum-managing director Nirmal Singh Bhangoo was booked by the Central Bureau of Investigation (CBI) in a ₹45,000-crore Ponzi scam. After the scam was unearthed, the central agency had attached all properties of the Pearls Agrotech Corporation Limited (PACL), including the mega project launched in 2006.
Last month, GMADA had filed an affidavit in the apex court, stating that they are ready to do internal development works if Lodha committee provides them the funds. Following this, the court had directed GMADA to a prepare a detailed estimate of how much money is required for internal development works in both sectors and submit the report within a month.
In 2016, The Pearl City Mohali Residents’ Welfare Association had filed a case in the Supreme Court, urging the court to involve Punjab government for sorting out issues relating to both sectors as all the permissions to develop the sectors have to be given by the Punjab government under the mega housing project policy, which is also part of GMADA.
The court has also directed the association to submit details of all allottees of Sectors 100 and 104 with pending payments, documents and agreements within a month so that the exact amount can be ascertained.
Pearl City Mohali Residents’ Welfare Association president Kulbir Singh Sidhu said, “We urge GMADA to take proper initiatives to safeguard the interests of allottees who invested their hard-earned money in the project. It is the responsibility of the state government to take over the project as all approvals pertaining to the project has been given by the state government.”
Earlier, the Supreme Court had directed Justice RM Lodha committee to check feasibility with GMADA under the state’s land pooling scheme. But after several meetings, GMADA has expressed its inability to take possession of PACL properties due to terms and conditions of Justice RM Lodha committee. GMADA, instead, has given a proposal to members of the Lodha committee, stating that PACL properties can be auctioned through its portal, which also could not be materialised.
In 2016, the Supreme Court constituted the Justice RM Lodha committee to sell off the PACL properties and return the money to affected investors.
Around 160 families reside in both sectors, where people have invested around ₹600 crore. Yet the sectors do not have a sewerage system, proper roads and streetlights.
HOW BHANGOO FELL INTO CBI TRAP
In 2013, the Securities and Exchange Board of India (SEBI) and investors filed a case in the Supreme Court against PACL, accusing it of raising ₹45,000 crore fraudulently from 5.5 crore investors through collective investment schemes. Following this, the court directed the CBI and SEBI to investigate and scrutinise the firm.
In February 2014, the CBI lodged a case against two Pearls Group real-estate firms. In all, 76 FIRs were registered against Bhangoo, 68.
After two years of investigation, in January 2016, the CBI arrested four top officials, including Bhangoo. Bhangoo was the chairman-cum-managing director and promoter-director of one of the two Delhi-based firms, Pearls Golden Forest Limited (PGF), and a former chairman of the group’s Australia-based arm Pearls Australasia Pvt Limited. At present, Bhangoo is lodged in jail.
THE PROJECT AT GLANCE
The project was launched in Sectors 100 and 104 in 2006
450 acres: Area under the project
1,300: Number of allottees
160: Families residing in both sectors
150 to 500 square yards: Size of plots
