SC asks CBI to provide assistance to SEBI in PACL case

The Supreme Court today directed CBI to provide necessary assistance and materials to SEBI to ensure that a case pending in the Australian Federal Court regarding Pearls Agrotech Corporation Limited (PACL) properties was properly conducted.
Security and Exchange Board of India (SEBI) told a bench of Justices A R Dave and Adarsh Goel that it was facing difficulties to sell PACL's properties due to a host of issues and unclear title deeds.
Senior advocate Arvind Datar appearing for the market regulator said that it is difficult to find buyers for the group's properties as some of them were already occupied.

The bench was hearing an application filed by PACL seeking funds from SEBI for payment of salaries and other expenses to repay the investors, besides an application of SEBI seeking assistance from CBI.
The court asked the regulator to file its reply on the PACL application and posted the matter for September 6.
The apex court had on July 25, restrained PACL and its promoters from disposing of its properties both in India and abroad after SEBI alleged that the company has siphoned off 98 million dollars in Australia.

PACL Ltd and its promoters and directors, including Nirmal Singh Bhangoo, have been embroiled in a legal battle for their alleged failure to refund Rs 49,100 crore to investors, an amount allegedly collected through chit funds schemes.

Earlier, a plea filed by investors group, Janlok Prathishtan Sanghata Committee, has also sought the government's help in bringing overseas assets of the group under control, liquidate them and get refund of money to its 5.85 crore investors across the country.
The committee, comprising 45,000 investors, had claimed that PACL has assets worth Rs 4,500 crore in Australia.
It has said that the group's assets include Sheraton Mirage Resort (Sheraton) on the Gold Coast through a company called Pearls Australasia Mirage 1 Pty Ltd incorporated in October 2009, Pearls Infrastructure Projects Ltd and several other properties.
The apex court had on February 2 appointed an expert committee headed by former Chief Justice R M Lodha to monitor the sale of the assets of the company and refund of money to the investors of PACL.

SEBI has initiated recovery proceedings against the group and its promoters and directors.