Supreme Court restrains PACL from alienating its properties in India and abroad

PACL Ltd and its promoters and directors, including Nirmal Singh Bhangoo, have been embroiled in a legal battle for their alleged failure to refund Rs 49,100 crore to investors, an amount collected through chit funds schemes.

By: ENS Economic Bureau | New Delhi | Published: July 26, 2016 2:16 am

The Supreme Court Monday restrained Pearls Agrotech Corporation Ltd (PACL) and its promoters from alienating their properties both in India and abroad after Sebi alleged that the company has siphoned off 98 million dollars in Australia.

PACL Ltd and its promoters and directors, including Nirmal Singh Bhangoo, have been embroiled in a legal battle for their alleged failure to refund Rs 49,100 crore to investors, an amount collected through chit funds schemes.

A bench of Justices Anil R Dave and L Nageswara Rao also sought a reply from the Centre on a plea of investors seeking the court’s intervention against alleged siphoning off of funds by the PACL group.

A plea filed by investors group, Janlok Prathishtan Sanghata Committee has also sought the government’s help in bringing overseas assets of the group under control, liquidate these and get refund of money to its 5.85 crore investors across the country.

Advocate Pratap Venugopal, appearing for Security and Exchange Board of India (SEBI), sought a direction from the court to the Centre for restraining PACL from selling its overseas assets. “Investors have moved an Australian court and sought injunction against assets sold by PACL for 98 million dollar,” he said. The group, comprising 45,000 investors, had alleged that the group has assets worth Rs 4,500 crore in Australia.

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