In a major crackdown on PACL Ltd, capital markets regulator Sebi has attached all assets of the company and its nine promoters and directors for their failure to refund more than Rs 60,000 crore due to investors - the
biggest illegal mobilisation of funds.
PACL had raised Rs 49,100 crore from nearly 5 crore investors that it needs to refund along with promised returns, interest payout and other charges, which take the total amount due to more than Rs 55,000 crore, Sebi said on Monday.
Besides, PACL has another group firm PGFL which has "illegally mobilised more than Rs 5,000 crore and failed to refund the same in spite of directions of Sebi and SAT", the regulator said while initiating the recovery proceedings.
The proceedings have been initiated against PACL Ltd, as also its promoters and directors -- Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Nirmal Singh Bhangoo, Tyger Joginder, Gurnam Singh, Anand Gurwant Singh and Uppal Devinder Kumar.
Sebi said the recovery proceedings have been launched "for their failure to refund an amount of Rs 49,100 crores with return due to investors, along with further interest and all costs, charges and expenses incurred in the recovery
proceedings".
Sebi had asked them to refund the money in an order dated August 22, 2014. The defaulters were directed to wind up the schemes, and refund money to the investors within a period of three months from the date of the order.
Sebi said it has attached all bank and demat accounts and mutual funds folios of these defaulters with immediate effect and that has been communicated to all the banks, depositories and mutual fund houses.
The recovery notices were also sent to the defaulters, while all banks, financial institutions, depositories or any other persons holding assets of the defaulters have been advised not to part with the same and report the same to the Recovery Officer at Sebi office in the national capital.
The mobilisation of funds by PACL Ltd traces back to 1990s. Upon receipt of a complaint, Sebi had first issued letters in November-December 1999 to PACL, advising it to comply with the provisions of the Sebi's CIS Regulations dealing with Collective Investment Schemes.
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