Sebi cautions investors against dealing in PACL properties

Regulator Sebi today asked PACL's investors to file their claims for refund of money in a prescribed format to be issued by Supreme Court-appointed committee and cautioned public at large against dealing with any property where the group and its promoters have interests.
Sebi said that the process of auction PACL Ltd's properties is underway. It had earlier invited expression of interest (EOI) from the public at large on the properties of PACL.
The regulator also cautioned public against buying, dealing with any properties wherein PACL Ltd or any of its associates/subsidiaries have any interest/rights, directly or indirectly.
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 refunds are made to genuine investors after sale of attached PACL assets.
The panel, chaired by former chief justice R M Lodha, is overseeing the process of disposing of assets to refund money to investors after verifying their genuineness.

"The process of refund would be initiated upon realisation of a sizeable amount by the committee. In such case, investors would be required to file their claims only in the prescribed format upon specific notification by the committee," Securities and Exchange Board of India said in a statement.

"Till such notification investors are requested to retain their documents with themselves and not to part with them for any reason whatsoever," it added.
In August, the committee had invited public at large to submit expressions of interest for sale of properties in 192 districts. In this regard, 6,504 EoIs were received.
In December 2015, 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 due to investors -- the biggest amount for any such case.
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, as per the Sebi order.

The proceedings were initiated against PACL as also its promoters and directors. Recovery proceedings were launched "for their failure to refund an amount of Rs 49,100 crore with return due to investors, along with further interest and all costs, charges and expenses incurred in the recovery proceedings".
Sebi had asked them to refund the money in an order dated August 22, 2014. The defaulters were directed to wind up the schemes and refund money to the investors within three months from the date of the order.