New Delhi, June 10: The Enforcement Directorate (ED) has achieved a significant milestone in the PACL scam by restoring 282 properties valued at approximately ₹9,420.57 crore to the Justice R.M. Lodha committee. This action follows a special court order under the Prevention of Money Laundering Act, 2002, and is expected to expedite the process of refunding trapped funds to millions of investors.
According to the ED, assets worth around ₹1,595.85 crore have been seized in the current financial year alone. This brings the total value of seized properties in the PACL case to ₹28,626 crore, which includes assets located in Australia as well as India.
The agency reported that the seized properties were registered under the names of PACL Limited, its associated companies, and the family and associates of the late Nirmal Singh Bhangoo. This includes his wife, Prem Kaur, daughters Barinder Kaur and Sukvinder Kaur, as well as sons-in-law Harsitinder Pal Singh Hair and Gurpartap Singh.
The ED revealed that investors were misled into making cash payments and investments by promising land allocations and returns. In many instances, allocation letters and other documents were issued despite the lack of actual land ownership, leading to widespread fraud. Allegations suggest that nearly ₹48,000 crore remains unrecovered by investors.
In 2016, the Supreme Court directed the Securities and Exchange Board of India (SEBI) to form a committee led by former Chief Justice R.M. Lodha during a hearing of a related case. The court also ordered that funds generated from the sale of PACL’s land and other assets be returned to the investors, leading to the establishment of the Lodha committee.
The ED initiated a money laundering investigation on July 26, 2016, uncovering that the proceeds of crime were funneled through various companies and associates to acquire properties both domestically and internationally.
On September 10, 2018, the ED filed a prosecution complaint in a special court, which has since taken cognizance of the matter. The agency has taken action against several accused individuals in the case.
The restoration of properties valued at ₹9,420.57 crore marks a crucial step towards returning funds to millions of defrauded investors, according to the ED.
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