Sebi beings auction of two PACL properties

Markets regulator Sebi today held e-auction of two properties belonging to PACL group as part of its efforts to recover funds totalling Rs 60,000 crore.
The auction was carried out by HDFC Realty on behalf of the Sebi.
Two properties of PACL, also known as Pearl Group, located in New Delhi include a spacious office property in Connaught Place area and a residential plot in Nangloi in northeastern Delhi. They were put on the block today with reserve prices of Rs 26.63 crore and Rs 81 lakh respectively.
HDFC Realty and any other concerned entities declined to give information on the results of today's auction citing regulatory directions.

PACL, which had raised money from the public in the name of agriculture and real estate businesses, was found by Sebi to have collected these funds through illegal collective investment schemes over 18 years.
Pursuant to a Supreme Court order, Sebi had set up a high-level committee to ensure that refunds are made to the genuine investors after sale of attached PACL assets. Subsequently, Sebi has roped in HDFC Realty for the auction.

A panel, headed by former Chief Justice of India R M Lodha is overseeing the process of disposing of properties to refund investors after verifying their genuineness.

The market regulator has already issued a detailed set of frequently asked questions in 13 languages, including English and Hindi, about the refund process.
Last December, Sebi had ordered attachment of all assets of PACL and its nine promoters and directors for their failure to refund more than Rs 60,000 crore which are due to investors -- the biggest amount for any such case.
PACL had raised Rs 49,100 crore from nearly five crore investors that it needs to refund along with promised returns, interest payout and other charges, which took the total amount due to over Rs 55,000 crore, as per the Sebi order.

Besides, PACLs group firm PGFL had illegally mobilised over Rs 5,000 crore and failed to refund the same in spite of directions of Sebi and SAT.
Yesterday, Sebi began auctioning some of the 61 identified properties of Sahara group, which was also found guilty of raising money illicitly from the market. The Sahara auction was also conducted by HFDC Realty and apparently could not get good response.