Pune-based citizen group Janlok Pratishthan will hold a mass protest next week against market regulator Sebi for its failure to ensure refund investors defrauded by the PACL Group through illegal collective investment scheme.
The cheated investors from across the country will gather at the MMRDA Grounds in the tony Bandra-Kurla Complex here, where the Sebi is headquartered, on February 26 to voice their protest against Sebi's continuing indifference in ensuring the return of their investment, Janlok Pratishthan said in a statement today.
"The Securities and Exchange Board has failed to protect our interests and ensure return of their hard-earned money. The small depositors are always at the receiving end of defaulting companies and institutions like Sebi are increasingly proving to be lax in safeguarding investor interest," Janlok Pratishthan president Sunanda Kadam said.
"Through this protest, we want to condemn the inaction of Sebi which has just become a bureaucratic entity and failed to check the increasing instances of financial frauds and ponzi schemes," she added.
The citizen group claimed that Rs 400 crore received from the sale of PACL's Sheraton Miraj hotel in Australia has been deposited in an escrow account in that country.
"Continued apathy and inaction from Sebi is resulting in undue delays in bringing that money to the country. The regulator has proved ineffective in refunding the investments of nearly 60 million PACL investors with interest," she said.
Sebi had in 2015 found that PACL had collected over Rs 60,000 crore through illegal collective investment schemes over the past 18 years from public in the name of agriculture and real estate businesses.
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 were due to investors.
Subsequently, the Supreme Court-appointed RM Lodha committee, which is overseeing disposal of PACL assets so as to repay the affected investors, has recommended refund to investors with the money so far realised by it.
According to the citizen group, Lodha committee suggestions have not been honored by the Central and state governments and district administrations.
Earlier this year, Sebi had asked some PACL investors to submit their refund claims for their investments in company's illegal investment schemes, if their total principal amount claim was up to Rs 2,500. The details have to be submitted by this February 28.
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