In a fresh clampdown in the PACL case, Sebi today slapped a penalty of Rs 23.32 crore on the company and its nine top executives, including Nirmal Singh Bhangoo, for illegally raising Rs 49,100 crore from investors.
The company, which had raised money from public in the name of agriculture and real estate businesses, was found by Sebi to have collected over Rs 49,100 crore through illegal collective investment schemes over a period of 18 years.
Sebi has already directed refund of the money, along with applicable returns and interest payouts, while the regulator has also ordered attachment of the assets of this Pearl Group firm and its top executives.
The total money due to be returned by PACL and another group firm PGFL amounts to their over five crore investors amounts to over Rs 60,000 crore -- making it the biggest ever case of illicit mobilisation of funds from the public.
In its latest order passed today, Sebi has asked PACL to pay a penalty of Rs 3.34 crore, while a fine of Rs 2.32 crore has been imposed on Bhangoo -- who has been widely known as the main person behind the Pearls group.
Others who have been penalised are Anand Gurwant Singh, Gurnam Singh, Tarlochan Singh, Sukhdev Singh, Uppal Devinder Kumar, Tyger Joginder, Gurmeet Singh and Subrata Bhattacharya. The total penalty on PACL and these persons amount to Rs 23.32 crore.
In his 57-page order, Sebi's Adjudicating Officer Amit Pradhan said the company carried on with various collective investment schemes without obtaining registration and these activities continued from May 30, 1996 till June 15, 2014.
According to the adjudicating officer, huge amount was mobilised, warranting maximum penalty of Rs 10,000 per day for the first block and Rs 1 lakh per day -- subject to a maximum of Rs 1 crore -- for the second block.
"I note that for the first block of the period, noticee 1 is liable for penalty of Rs 2,34,30,000 as the noticee 1 (PACL) sponsored and carried on its collective investment schemes for a total number of 2,343 days," the order said.
