Sebi-PACL: SAT Rejects Bhangoo's Stay Plea; Hearing on January 29

MUMBAi: In the PACL case involving refund of a whopping Rs 60,000 crore to investors, tribunal SAT today rejected an appeal by Nirmal Singh Bhangoo to stay the recovery process initiated by Sebi and listed the matter for hearing on January 29.

An earlier plea by Bhangoo, one of the main promoters of the PACL group which includes companies like Pearls Agrotech Corp Ltd and Pearls Golden Forest Ltd (PGFL), is already pending before the Securities Appellate Tribunal (SAT).

Facing heat from multiple agencies in the country's biggest illegal fund-mobilisation case, Bhangoo had moved SAT on December 30 against Sebi's recovery proceedings to collect funds due to investors.

A single-member bench had listed the matter for today, as the Presiding Officer of the Tribunal was on vacation.

In today's proceedings, the Tribunal refused to grant any immediate stay sought by Bhangoo and listed the matter for hearing on January 29.

Earlier this week, PACL had also filed a writ petition before the Delhi High Court seeking a stay on Sebi's recovery proceedings which the regulator initiated earlier last month against PACL, Bhangoo and others to recover funds totalling more than Rs 60,000 crore that they were asked to refund to investors.

While PACL is being probed by multiple agencies including CBI and ED, Sebi found it to have collected money from crores of investors through unauthorised collective investment schemes in the name of real estate projects. It is also said to have been involved in agriculture land related schemes.

The mobilisation of funds date back to 1 90s.

However, the court has not granted any stay and the matter is likely to be heard further next month.

Interestingly, SAT has previously rejected a plea by PACL against Sebi's earlier refund order asking the company and its promoters and directors to refund Rs 49,100 crore along with applicable returns and interest to the investors.

The company had also approached Supreme Court, which has not granted any stay on the matter. After hearing another plea earlier in 2013, the apex court had directed Sebi to probe the matter involving PACL's fund-collection schemes and take appropriate actions.

Last month, the government had said that instructions have also been issued to Registrar of Companies to file prosecutions against PACL for non-compliance of provisions of the Companies Act and accounting standards.

Replying to a question in the Rajya Sabha, Minister of State for Finance Jayant Sinha had said that the government had received various complaints with regard to collection of deposits by PACL India alleging non-payment of amounts advanced to the company for purchase of land, money laundering and non-settlement of accounts in respect to transfer of land.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com