SC asks PEARLS group to move expert committee for dues payment

Supreme Court today asked Pearls Agrotech Corporation Ltd (PACL) to approach the expert panel appointed by it to monitor the sale of assets and refund of money to the investors, for any relief for release of funds.
A bench comprising Justices A R Dave and L Nageshwara Rao asked the group to move its application for release of funds to pay statutory dues with the expert committee headed by former Chief of India R M Lodha.
"Petitioner (PACL) is directed to approach the Justice R M Lodha committee with its application seeking relief. The committee can take appropriate decision with regard to the application," the bench said.

During the hearing, senior advocate Abhishek Manu Singhvi said the company needed to pay statutory dues like litigation costs, Provident Funds and insurance of the employees and other expenses, for which SEBI should release the funds.
Counsel appearing for Security and Exchange Board of India (SEBI) opposed the plea and said they had only Rs 112 crore which will be paid to the investors and company's application should not be entertained.
The apex court had on February 2 appointed the expert committee to monitor the sales of the assets of company and refund of money to the investors of PACL.

It had directed that title deeds of various lands of PACL should be handed over by the CBI to the SEBI, which shall accordingly take appropriate steps to ensure their sale for the purpose of refunding the money to the investors.

It also directed the Pearls Agrotech Corporation Ltd (PACL) not to accept any deposit from the public and restrained any court from interfering with sale proceedings.
The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against PACL Ltd and its promoters and directors, including Nirmal Singh Bhangoo, for their failure to refund Rs 49,100 crore to investors.

Earlier, SEBI had passed a refund order against various PACL group companies after holding them guilty of illegitimately pooling funds from the public through a collective investment scheme.
SEBI found that PACL had collected money from crores of investors through unauthorised collective investment schemes in the name of real estate projects and some agricultural land-related schemes.
The apex court's direction had come after a plea was filed by PACL Customers and Employees Association seeking a direction to SEBI to initiate proceedings against PACL for allegedly swindling around Rs 500 crore from various investors in Kerala.