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Sebi slaps Rs 1-cr fine on PACL's former director Devinder Kumar

PACL raised about Rs 49,100 cr through illicit collective investment schemes from 1996 to 2014

Press Trust of India  |  New Delhi 

(Photo: Reuters)

Regulator today imposed a penalty of Rs 1 crore on Uppal Devinder Kumar, who was director of Ltd for 50 days in 1998, finding him party to the company's illegal mobilisation of funds from the public.

raised about Rs 49,100 crore through illicit collective investment schemes from large number of investors from 1996 to 2014.

Kumar, who acted as PACL's director for around 50 days in 1998, had sponsored and carried on illicit collective investment scheme (CIS) which continued till 2,315 days, noted.

The regulator said that Kumar did not take any step to stop the company from raising funds through its unauthorised CIS from public and did not initiate process to refund to the investors.

"I note that the noticee (Kumar) had not taken any steps to ensure compliance with the applicable law during his tenure as director of the company," Adjudicating Officer Amit Pradhan said.

"Had the noticee taken any step after joining as a director, the same could have resulted into refund to the investors who had already invested in the schemes of the company and could have also stopped or at least reduced the amount illegally mobilised in the schemes of the company, which continued till September 30, 2002," he added.

Also, the Securities and Exchange Board of India (Sebi) said that Kumar was instrumental for the violation committed for 2,315 days.

Accordingly, the regulator levied a monetary penalty of Rs 1 crore on Kumar.

The latest penalty follows another order by Sebi in 2015, wherein a fine of Rs 7,269.5 crore was imposed on and its four directors -- Tarlochan Singh, Sukhdev Singh, Gurmeet Singh and Subrata Bhattachary -- for illegal and fraudulent mobilisation of funds from the public.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 19:21 IST