SC appoints panel for refunding Pearl Group investors; Sebi fines execs
The Supreme court on Tuesday appointed a committee headed by of former chief justice of India RM Lodha to oversee the refund of Rs 49,000 crores to about 5.5 crores investors in the Pearl Group scam within six months.Updated: Feb 02, 2016 23:54 IST
The Supreme court on Tuesday appointed a committee headed by of former chief justice of India RM Lodha to oversee the refund of Rs 49,000 crores to about 5.5 crores investors in the Pearl Group scam within six months.
A bench comprising Justice Anil R Dave and Justice AK Goel said the committee will supervise the sale of assets of Pearls Agrotech Corporation Limited (PACL) by Securities and Exchange Board of India (Sebi).
It further directed the Central Bureau of Investigation to handover seized land records of the company to Sebi.
Over 10,000 properties of PACL Ltd spread across states like Punjab, Haryana, Rajasthan, and Delhi are likely to be sold, besides liquidation of their various cash deposits, for paying back the investors.
The CBI had in February 2014 registered a first information report (FIR) against the two firms and eight of their top officials, including Bhangoo, on charges related to criminal conspiracy and cheating. The probe revealed that the firms were allegedly running collective investment (ponzi) schemes under the garb of sale and development of agricultural land in an unauthorised manner.
Earlier this month, the agency had arrested four of their top officials, including chairman-cum-managing director (CMD) Nirmal Singh Bhangoo.
The money was collected by th company in a ponzi schemes under the garb of sale and development of agricultural land. The amount involved is twice that collected by the Sahara group under the OFCD scheme which is reported to have collected about Rs 24,000 crore.
First Published: Feb 02, 2016 23:54 IST