SEBI cautions public against dealing with PACL assets

PTI New Delhi | Updated on January 18, 2018 Published on July 31, 2016

The Securities and Exchange Board of India has cautioned public at large against dealing with any property where PACL and its promoters have interests.

The regulator has started taking efforts to recover Rs 60,000 crore in the case to refund investors.

Besides, the watchdog has said anyone dealing with such properties will be doing it 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.

PACL, which had raised money from the public in the name of agriculture and real estate businesses, was found by SEBI to have collected these funds through illegal collective investment schemes over 18 years.

In a release, SEBI has advised the public at large “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’’.

On July 25, the Supreme Court had said PACL, its directors/promoters/agents/employees/group and/or associate companies are restrained from in any manner selling/ transferring/alienating any of the properties” wherein the company has an interest, 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 Rs 60,000 crore due to investors — the biggest amount for any such case.

As per SEBI order, PACL had raised Rs 49,100 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 Rs 55,000 crore.

Besides, PACL group firm PGFL “illegally mobilised more than Rs 5,000 crore and failed to refund the same in spite of directions of SEBI and SAT”, the regulator had said, while initiating the recovery proceedings.

Published on July 31, 2016
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