Instructed ROC to file prosecutions against PACL: Govt

Government had issued instructions to the ROC to file prosecutions against PACL for non- compliance of provisions of the Companies Act and accounting standards, the Rajya Sabha was informed today.
"The Ministry of Corporate Affairs had issued instructions to the concerned Registrar of Companies (ROC) to file prosecutions for non-compliance of various provisions of the Companies Act, 1956 as well as Accounting Standards," Minister of State for Finance Jayant Sinha said in a written reply to the Upper House.
He said the ministry had received various complaints with regard to collection of deposits by PACL India alleging non-payment of amounts advanced to the company for purchase of land, money laundering and non-settlement of accounts in respect to transfer of land.

"It had been alleged that the company had collected Rs 50,000 crore through these schemes. Taking cognizance of such complaints, the Ministry of Corporate Affairs ordered inspection under the Companies Act (1956) of books of account and other record of the company," Sinha said.
It examined the inspection report and issued the instructions to the ROC, he said.
Capital markets regulator Sebi yesterday attached all assets of PACL Ltd and its nine promoters and directors for failure to refund more than Rs 60,000 crore due to investors.

PACL had raised Rs 49,100 crore from nearly 5 crore investors that it needs to refund along with promised returns, interest payout and other charges, which take the total amount due to more than Rs 55,000 crore.

Sebi had filed criminal complaints before Tis Hazari Court on November 17, 2015 against the company and its directors.
The mobilisation of funds by PACL Ltd traces back to 1990s. Upon receipt of a complaint, Sebi had first issued letters in November-December 1999 to PACL, advising it to comply with the provisions of the Sebi's CIS Regulations dealing with Collective Investment Schemes.