New Delhi : The Supreme Court on Tuesday ignited hopes of thousands who lost money invested in PACL Limited on promise of getting land as it empowered the Securities and Exchange Board of India (SEBI) to sell assets of the company to refund the investors. It also set up a committee headed by former Chief Justice of India R M Lodha to work with SEBI in selling of assets and refund as much as possible out of Rs 49,000 crore invested by people.
A Bench comprising Justices Anil R. Dave and A.K. Goel ordered the CBI to handover title deeds of properties of PACL to Sebi. The court in its order said that the committee would decide on the modalities of sale of assets. It, however, hinted that the sales would be through a public auction in an oral observation.
Fixing the next hearing on August 2, the court also ruled that the company shall not collect any further investments.
Everyone in India wants to own land and so the scheme run by PACL promoters Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Nirmal Singh Bhangoo, Tyger Joginder, Gurnam Singh, Anand Gurwant Singh and Uppal Devinder Kumar worked magically until SEBI realised that everybody was duped.
On December 11, Sebi had initiated recovery proceedings against PACL Ltd and its promoters and directors for their failure to refund Rs.49,100 to investors.
Last year, Sebi had passed a refund order against the entities after finding them guilty of illegitimately pooling funds from the public through a ”collective investment scheme” (CIS).