Economic Offences Unit strikes as Pearl breaks Sebi ban

PATNA: Acting on a tip-off, the Economic Offences Unit (EoU) of Bihar police on Monday raided the offices of Pearl Agrotech Corporation Limited (PACL) in Purnia, Rohtas, Nalanda and Vaishali districts and seized some cash and incriminating documents showing that the company has continued to take deposits form investors in Bihar despite the Sebi’s blanket ban.
The EoU has lodged a case against nine members of the board of directors of PACL.They are: Anand Gurubant Singh, Tarlochan Singh, Sukhdeo Singh, Nirmal Singh Bhangoo, Gurnam Singh, Utpal Devendra Kumar, Tiger Yogendra Singh, Gurmeet Singh and Subrata Bhattacharya. Apart from the relevant sections of the IPC, case has been lodged under the Protection of Interest of Depositors Act.
PACL has been accused of defrauding funds worth over Rs 49,100 core collected from 5.85 crore investors from across the country. EoU IG Jitendra Singh Gangwar said on Monday that overall the scam is bigger than the Sahara (Rs 24,000 crore) and Saradha scams (Rs 7,000 crore).
The investors were promised that they would be given land at cheaper rates. Those interested in return of money after a certain period were promised higher interest rates. Gangwar said Sebi has already been informed about the embezzlement of investors’ money by the company.
The EoU, with the help of local police, raided the company’s official premises at several places and recovered cash and computers. From the PACL’s Nalanda office, the raiding party seized Rs 7.67 lakh, computer and documents pertaining to its fraudulent activities, while from Vaishali cash amounting to over Rs 4.21 lakh besides computers and papers were seized. Over Rs 4.43 lakh in cash, computers and papers were seized from Purnia while Rs 3.90 lakh in cash, computers and papers were seized from Rohtas.
PACL, registered in Rajasthan in 1996, had started its operation in Purnia district town and later extended its operations to three other districts — Nalanda, Rohtas and Vaishali.
The SEBI had banned PACL from collecting money from public from August 22, 2014, but it kept on accepting money from depositors in back dates. Sebi had also directed the company to refund the depositors’ money within three months, but the company has failed to do so.
Despite attempts, PACL directors and officials could not be contacted.