Take call on developing Pearl City, SC tells Punjab

CBI had attached all properties of the Pearl Agrotech Corporation Limited, including the Pearl City, in 2006.

The Supreme Court (SC) has issued a notice to the Punjab government to take a call on developing Pearl City’s Sectors 100 and 104 in Mohali, and file a reply by January 20, 2020.

In the SC orders issued on December 17, the state government has been told to clear its stand on taking over both sectors, and file a reply within four weeks before January 20, 2020. (HT PHOTO)

The fate of around 1,300 allottees of Pearl City, which was being developed by Pearl Agrotech Corporation Limited (PACL) in these two sectors, is hanging in balance since 2014 after its chairman-cum-managing director (CMD) Nirmal Singh Bhangoo was booked by the Central Bureau of Investigation (CBI) in a ₹45,000-crore Ponzi scam.

The central agency had attached all properties of the PACL, including the mega project launched in 2006.

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.

‘CLEAR STAND’

In the SC orders issued on December 17, the state government has been told to clear its stand on taking over both sectors, and file a reply within four weeks before January 20, 2020.

In 2016, the apex court had constituted the Justice RM Lodha committee to sell off PACL properties and return the money to affected investors.

In another order issued on July 30, 2019, the court directed the committee to explore the possibility of developing the project that falls under Greater Mohali Area Development Authority (GMADA) area as part of the Punjab government’s land pooling scheme.

Under the scheme, a private developer can collaborate with the state government to develop projects on 80:20 profit-sharing basis.

But after several meetings, GMADA in October expressed its inability to take possession of PACL properties. Instead, it gave a proposal to members of the Lodha committee, stating that PACL properties can be auctioned using its portal, which also did not materialise.

Now, SC has issued notice to the state government, asking it to intervene in the project.

Pearl City Mohali Residents’ Welfare Association president Kulbir Singh Sidhu said it was the responsibility of the state government to take over the project as all approvals pertaining to the project were given by it. “Huge amounts were taken as fees from allottees in various forms. We request the government to act in the interest of allottees,” he added.

HOW BHANGOO FELL INTO CBI TRAP

In 2013, the Securities and Exchange Board of India (SEBI) and investors filed a case in the SC against PACL, accusing it of raising ₹45,000 crore fraudulently from 5.5 crore investors via collective investment schemes.

Following this, the court directed CBI and SEBI to investigate and scrutinise the firm.

In February 2014, CBI lodged a case against two Pearls Group real-estate firms. In all, 76 FIRs were registered against the CMD, Bhangoo.

After two years of investigation, in January 2016, CBI arrested four top officials, including Bhangoo, who was the CMD 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. He is currently lodged in jail.