In the PACL scam, the Enforcement Directorate (ED) has taken a major action, attaching 126 properties worth Rs 5,046.91 crore linked to PACL Ltd. These properties are mainly reported to be located in Delhi and Punjab. The case is related to an alleged fraudulent investment scheme, in which the company lured people with promises of land, collecting nearly Rs 48,000 crore from millions of investors across the country. However, most investors neither received land nor got their money back.
The investigation into this scam was initiated by the Central Bureau of Investigation (CBI) in 2014, after which the Enforcement Directorate registered a case under money laundering. During the investigation, it was revealed that the company diverted funds through several shell companies and paper transactions.
It is noteworthy that in 2016, the Supreme Court had constituted a committee to return money to investors. Despite this, it is alleged that the illegal sale and manipulation of the company’s assets continued. According to the ED, more than Rs 22,656 crore worth of assets have been attached in this case so far, and the investigation is still ongoing.
What is the PACL scam?
This case, related to PACL, which stands for Pearls Agrotech Corporation Limited, is considered one of India’s largest financial scams and Ponzi schemes. It was run as a collective investment scheme, where the company encouraged investors to put money into agricultural projects and real estate development. In return, they were promised land or a doubling of their investment amount.
How did the Ponzi scheme work?
The investigation revealed that the entire scheme operated like a Ponzi scheme, where funds collected from new investors were used to pay older investors and provide hefty commissions to agents. Nirmal Singh Bhangoo, the founder of Pearl Group, whose name emerged behind this entire network, passed away in August 2024.
