Did the Pearls Group commit fraud? ED seizes 169 properties in Punjab worth Rs 3,436 crore
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Synopsis
The ED has taken significant action against Pearls Agrotech Corporation Ltd by seizing 169 properties in Punjab linked to a massive fraud case. This bold move underscores the ongoing battle against financial misconduct and aims to protect investors from deceitful schemes.
Key Takeaways
- ED has seized 169 properties in Punjab linked to fraud.
- The properties are valued at Rs 3,436 crore.
- Fraud amount totals around Rs 48,000 crore.
- Investigation initiated by the CBI.
- PACL operated illegal collective investment schemes.
New Delhi, Dec 18 (NationPress) The Enforcement Directorate (ED) has provisionally seized 169 immovable properties in Ludhiana, Punjab, valued at Rs 3,436.56 crore, as part of an investigation linked to a staggering Rs 48,000 crore fraud orchestrated by Pearls Agrotech Corporation Ltd (PACL), an official disclosed on Thursday.
The ED's Delhi Zonal Office took this decisive action amid an ongoing inquiry into the PACL case under the Prevention of Money Laundering Act (PMLA), 2002, according to the statement.
This investigation was initiated following an FIR lodged by the Central Bureau of Investigation (CBI), specifically the Bank Securities and Fraud Branch (BSFC), New Delhi, under Sections 120-B and 420 of the Indian Penal Code (IPC), which pertains to conspiracy and cheating against PACL, M/s PGF Ltd., the late Nirmal Singh Bhangoo, and others.
The case revolves around extensive fraudulent collective investment schemes launched by PACL, through which the company and its affiliates deceitfully amassed approximately Rs 48,000 crore from unsuspecting investors.
The ED stated that this vast sum represents the Proceeds of Crime (POC).
According to the investigation, a portion of the funds raised from millions of investors was utilized for securing these 169 immovable properties, currently appraised at Rs 3,436.56 crore, under the name of PACL.
To date, the ED has attached a total of Rs 5,602 crore worth of both movable and immovable properties, which encompass assets located across India as well as abroad, as detailed in the statement.
As of now, one Prosecution Complaint and two Supplementary Prosecution Complaints have been filed in this case.
Investigators reveal that PACL did not operate legitimate, registered collective investment schemes (CIS); instead, the entire business model was classified by the Securities and Exchange Board of India (SEBI) as illegal and fraudulent, functioning without proper registration, primarily masquerading as real estate and agricultural land development schemes.
Point of View
This case highlights the critical need for regulatory vigilance in the financial sector. The extensive fraud perpetrated by PACL serves as a cautionary tale about the vulnerabilities in investment schemes, emphasizing the importance of investor awareness and regulatory frameworks to prevent such occurrences in the future.
NationPress
20/12/2025
Frequently Asked Questions
What prompted the ED to seize these properties?
The seizure was part of an ongoing investigation into PACL's fraudulent activities under the Prevention of Money Laundering Act.
How much money is involved in this fraud case?
The total fraud amount is estimated to be around Rs 48,000 crore.
What actions have been taken against PACL so far?
The ED has attached properties worth Rs 5,602 crore, including both domestic and foreign assets.
What is the status of the legal proceedings?
Currently, one prosecution complaint and two supplementary complaints have been filed in this case.
Was PACL operating legally?
No, PACL was found to be operating illegal investment schemes without proper registration as mandated by SEBI.
