SEBI orders attachment of PACL properties in Punjab to recover Investors Money.

The regulator had found that PACL Ltd, which had raised money from the public in the name of agriculture and real estate businesses, collected more than Rs 60,000 crore through illegal collective investment schemes (CISs) over 18 years.

The properties being attached are land parcels situated at Banur in Punjab, the Securities and Exchange Board of India (SEBI) said in a statement.

A panel headed by retired Justice R M Lodha initiated the process of refunds in two phases — during the period January 2, 2018, to March 31, 2018, and February 8, 2019 to July 31, 2019, — for investors, who invested money in PACL.

The committee has successfully effected refunds to more than 12.7 lakh investors, with claims up to Rs 10,000, aggregating to Rs 438.34 crore as of March 2021.” Sebi said in a statement.

The committee, in February 2019, had asked PACL investors to submit online applications for refund.

The panel has been processing applications received from investors in a phased manner, slab wise, and currently, applications with claim amounts up to Rs 10,000 have been processed and payments have been made in respect of eligible claim applications.

The attachment order comes after the Department of Industries & Commerce, Government of Punjab, informed the committee about the properties belonging to PACL. Therefore, the committee directed Sebi’s recovery officer to attach these properties.

The regulator has prohibited entities concerned “from taking any benefit under such disposal, transfer, alienation or charge in respect of the properties… which stands attached in execution of recovery certificate”

Further, they have been directed to furnish complete details of all the moveable and immoveable properties held by them, and charges if any, in a prescribed format, along with original title deeds pertaining to the four properties within two weeks.

In December 2015, the Securities and Exchange Board Board of India (SEBI) had ordered the attachment of all assets of PACL and its nine promoters and directors for their failure to refund the money that was due to investors.