PACL case: Sebi collects large number of property documents

Making a "headway" for refund of money to investors in over Rs 50,000 crore PACL case, SEBI on June 24 said a large number of property documents have been collected and the process is on for auction of those assets.

The market watchdog has tightened the noose on PACL for refunding the money collected through illegal money pooling activity, which is seen as one of the biggest ponzi schemes in the country.

A committee, constituted by the Securities and Exchange Board of India (SEBI) under the chairmanship of former chief justice of India R M Lodha, has made "headway having collected a large number of property documents and engaged an agency for their safe custody, data creation and maintenance and has also engaged two agencies to conduct auction sale of properties." The first of the sale notice was published on May 29.

The regulator had set up a high-level committee to ensure refunds in the PACL case are made to genuine investors following a Supreme Court order.

The committee also solicited "cooperation from customers /investors of PACL Ltd and requests them not to be guided by any reports/rumours not published by the committee and to submit documents only upon being specifically invited to do so by the committee".

PACL, a Pearl Group company that had raised money from public in the name of agriculture and real estate businesses, was found by SEBI to have collected thousands of crores through illegal collective investment schemes over a period of 18 years.

It was found to have 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 took the total amount due to over Rs 55,000 crore, as per a SEBI order.