ED attaches ₹762.47 crore worth of assets in PACL case.

The Enforcement Directorate (ED) has attached assets worth ₹762.47 crore in the PACL case, involving alleged fraudulent collective investment schemes. The properties are located in Punjab, Haryana, Delhi, Maharashtra, and Australia. The ED probe revealed that funds collected from investors were diverted and layered through multiple transactions to conceal their illicit origins.

The Enforcement Directorate (ED) has provisionally attached immovable properties worth about ₹762.47 crore in the PACL case, involving alleged fraudulent collective investment schemes. The properties are located across Punjab, Haryana, Delhi, Maharashtra, and Australia [1].

The ED probe is based on a first information report registered by the Central Bureau of Investigation against PACL Limited, PGF Limited, its promoter Nirmal Singh Bhangoo (since dead), and others. The case pertains to alleged large-scale fraudulent collective investment schemes floated by PACL that were structured to deceive and defraud investors. Through these deceptive schemes, PACL, through its directors and others, collected and misappropriated about ₹48,000 crore from investors [1].

The ED investigation revealed that the funds collected from lakhs of gullible investors were systematically diverted and layered through multiple transactions to conceal their illicit origins. The tainted funds were also used to acquire 68 immovable properties having a current market value of ₹762.47 crore in various names, as alleged [1].

The ED's move comes amid ongoing investigations into the PACL scam, which has defrauded millions of investors. The Economic Offences Wing (EOW) of Uttar Pradesh arrested Gurnam Singh, director of Pearls Agro-Tech Corporation Limited (PACL), in a ₹49,000 crore Ponzi scheme that defrauded 50 million investors across 10 states [2].

The PACL scam involved land-for-deposit schemes, where the company promised land plots in exchange for recurring and fixed deposits. Despite not being registered as a Non-Banking Financial Company (NBFC), PACL collected vast sums in violation of the Reserve Bank of India Act [2].

The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have both launched independent probes into the PACL scam. The ED has also filed a supplementary prosecution complaint against PACL and its associates, noting that funds collected in Uttar Pradesh were funnelled through multiple shell companies [2].

The PACL scam is a stark reminder of the importance of stringent regulatory oversight and investor protection measures in the financial sector. As investigations continue, the ED's latest move underscores its commitment to asset recovery and tracing the remaining fugitives.

References:
[1] https://www.thehindu.com/news/national/enforcement-directorate-attaches-assets-worth-76247-crore-in-pacl-case/article69804989.ece
[2] https://www.business-standard.com/india-news/pacl-gurnam-singh-arrested-ponzi-scheme-49k-crore-50-million-investors-125071100592_1.html