 "PACL agents, investors take to streets in Delhi")
Hundreds of protesters from various parts of the country gathered here and demonstrated against the loss of their investments in schemes of the PACL group of companies.
The protesters, many of whom were agents of the company, staged a dharna at Jantar Mantar. They'd gathered under the banner of a hitherto unknown entity called the All Investor Safety Organisation (AISO).
Wearing Nehru caps which had an AISO emblem on one side and ‘PACL paise vapas karo (PACL, return our money)’ on the other, they raised slogans and demanded the authorities take steps for an early resolution. The protests come a week after the Securities and Exchange Board of India (Sebi) stated the public at large was being advised “not to deal with any of the properties wherein PACL Ltd and/or its directors/promoters/agents/employees/group and/or associate companies directly or indirectly have any interest”.
The PACL agents Business Standard spoke to said they were being hounded by investors, usually daily wagers and poor labourers, who wanted their money back. Some carried badges representing regions they were from, such as 'AISO Indore', 'AISO UP', etc. Those who didn’t have badges were being given receipts of membership on the spot by AISO volunteers.
Boleram Choudhry, an agent from Rajasthan’s Sikar, said he had about 700 agents working with him and together they had investments of over Rs 11 crore in PACL. “The company had been running smoothly for over three decades. They had never defaulted on repayments. They were giving handsome returns. In our areas, they were bigger than even LIC. But, everything has been ruined now.”
Choudhry said the track record of Sebi and court-appointed panels have not been great— in past instances like the Golden Forest scam, investors are yet to get payment. “Our worry is that we should not become like them.”
The protesters questioned why the considerable assets of the PACL group, which they said was worth Rs 1.3 lakh crore, was not being used to repay investors.
In a statement distributed among the protesters, AISO president Mahendra Pal Singh Dhankad referred to a February 2 directive by the Supreme Court for Sebi to sell the properties of PACL entities and take steps for refund of investors. “Even after six months, neither Sebi nor the Lodha committee (named to do so) have been able to refund even one investor. That is why we have been forced to do this dharna,” Dhankad said.
Founded by Nirmal Singh Bhangoo, PACL (earlier Pearl Agrotech Corporation) raised about Rs 49,000 crore from some 56 million investors through various schemes linked to real estate. In August 2014, Sebi had ordered the company to refund to investors the money raised. A year later, it also passed an order levying a record Rs 7,300 crore penalty on the group.
As the company failed to do so, the Supreme Court on February 17 set up a committee headed by ex-chief justice R M Lodha and four other members—S. Raman, Prashant Saran, Amit Pradhan and Rakesh Kumar Singh—to oversee disposal of the land purchased by PACL, to refund those who'd invested in various funds floated by the company for purchase of land.
The matter has become a subject of a probe by the Central Bureau of Investigation, which has arrested Bhangoo and some associates.
MONEY BACK
Aug 2014: Sebi passes order against PACL for refund of Rs 49,100 crore
Aug 2014:Securities law amendment Act passed in parliament
Jan 2015: Fresh show-cause notice to PACL and current directors for money raised after Sep 2013
Apr 2015: Supreme Court appoints two retired judges to realise PACL assets and settle dues
More From This Section
Aug 2015: SAT upholds Sebi's August 2014 order
Sep 2015: Order giving penalty based on show-cause in Jan 2015
Jan 2016: CBI arrests PACL founder Nirmal Singh Bhangoo
February 2016: Panel headed by former CJI RM Lodha set up to refund money to investors
July 2016: Court restrains promoters, directors of PACL from selling any group property
August 2016: Protest by AISO at Jantar Mantar