CBI arrests 11 people from several states in connection with PACL chit fund scam

The Central Bureau of Investigation (CBI) has arrested 11 people in connection with the Pearl Agro Corporation Limited (PACL) chit fund scam. According to reports, the arrested persons were nabbed from different states and the case is in connection with a scam to the tune of Rs 60,000 crores. The arrested people include employees of the company as well as some businessmen. The group has allegedly cheated at least five crore people across the country on the pretext of lucrative schemes.

Moreover, it is believed that the owners of the group had brought many properties abroad, including hotels with the money that was taken from the people who were investors. CBI Spokesperson RC Joshi has informed that 11 people have been arrested namely Chandra Bhushan Dhillon, Prem Nath, Manmohan Kamal Mahajan, Mohanlal Sehjpal, Kanwaljit Singh Tore. Joshi added that all accused belong to the Pearl Group.

The persons were arrested from cities like Delhi, Chandigarh, Calcutta, Bhubaneswar and some from other states. Earlier, the central agency had registered a preliminary inquiry against the company based on the directions of the Supreme Court. The group allegedly operated different investment schemes across the country without permission and cheated the investors. 

The PACL was banned in 2015 by the Securities and Exchange Board of India (SEBI) for illegally collecting at least Rs 49,100 crores from 58 million investors over 18 years. In September 2020, the SEBI had informed that over Rs 429 crore have been paid to more than 12 lakh PACL investors with claims of up to Rs 10,000.

A panel headed by retired Justice R M Lodha had initiated the process of refunds in phases for investors, who invested money in PACL. In a statement, Sebi had said at the time that the committee "as on date, successfully effected refund with respect to 12,48,344 eligible applications (with claims up to ₹10,000) aggregating to ₹429.13 crore".

The committee had, after making the refund to over 9.72 lakh investors having claim amount up to ₹8,000, initiated the process of refund to investors with claim amount between₹8,001 and ₹10,000, and has effected payment with respect to 2.76 lakh investors, it added. In December 2015, SEBI had ordered attachment of all assets of PACL and its nine promoters and directors for their failure to refund the money which was due to investors. SEBI had asked PACL as also its promoters and directors 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 three months from the date of the order.

(With inputs from agencies)