Pearl Agro Corp Scam: ED Intensifies Crackdown with Fresh Property Attachments
The Enforcement Directorate (ED) has intensified its crackdown on the massive Pearl Agro Corp Ltd ponzi scheme, announcing the attachment of 37 properties worth approximately Rs 2,000 crore located in Ludhiana and Jaipur. This latest move comes as part of the agency's ongoing money laundering investigation into the multi-level marketing firm that allegedly defrauded millions of investors across India.
Decades-Long Deception Unravels
According to an ED probe report, Pearl Agro Corp Ltd operated a sophisticated investment scheme that promised plot allotments to lakhs of investors while systematically deceiving both investors and regulators for nearly two decades. The company is estimated to have raised more than Rs 60,000 crore during its operation, with investigators revealing that most of these funds were siphoned off into personal assets both within India and abroad.
Rapid Asset Recovery in Recent Months
The fresh attachment includes a prime land parcel located close to Jaipur airport valued at over Rs 1,500 crore, according to sources familiar with the investigation. This development marks a significant acceleration in the agency's recovery efforts, with ED having attached assets worth over Rs 6,000 crore belonging to PACL and its promoter Nirmal Singh Bhangoo in less than two months between December and the present.
With these latest attachments, the total value of properties seized in the case has now reached an impressive Rs 7,600 crore, demonstrating the substantial scale of the alleged financial fraud.
Massive Investor Impact and Supreme Court Intervention
The Securities and Exchange Board of India (SEBI), which is conducting a parallel investigation into the matter, estimates that nearly six crore investors have been cheated by Bhangoo and his associates over the past twenty years. The sheer magnitude of the crime prompted the Supreme Court to constitute a special committee headed by Justice RM Lodha to ensure smooth restitution of lost money through the sale of assets attached by ED.
Elusive Accused and Complex Money Trail
The main accused and promoter of PACL, Nirmal Singh Bhangoo, has since passed away, but his family members and associates remain wanted by the ED to establish the complete money trail. Those being sought include his wife Prem Kaur, two daughters Barinder and Sukhwinder Kaur, son-in-law Gurpratap Singh, and close associate Prateek Kumar.
According to a senior official, the accused are currently absconding and have not been cooperating with the investigation, leading to the issuance of non-bailable warrants against them.
Previous Investigation Challenges
Despite the Central Bureau of Investigation (CBI) and Punjab Police having registered multiple First Information Reports (FIRs) against Bhangoo and his associates as early as 2014, initial probes failed to achieve significant breakthroughs as investigators struggled to trace the "proceeds of crime."
The money trail eventually established by ED revealed a sophisticated laundering operation where the accused deposited funds into Kolkata-based shell companies, withdrew substantial amounts in cash, and then transferred the money to Dubai through hawala dealers. These funds were subsequently used to purchase hotels and resorts overseas, including properties in Australia.
Ongoing Investigation and International Dimensions
The ED initiated its money laundering probe in 2016 and has filed three prosecution complaints (chargesheets) so far, with investigations continuing to identify additional assets of the accused. In 2018, the agency had already attached two properties of the accused in Australia worth Rs 462 crore, highlighting the international dimensions of this financial scandal.
Investors across multiple states including Delhi, Haryana, Punjab, Maharashtra, Telangana, Karnataka, West Bengal, Rajasthan, and Uttarakhand have suffered financial losses due to what authorities have described as a "collective investment scheme" or ponzi scheme operated by Pearl Agro Corp.
Legal Process for Asset Disposal
According to a senior ED official, once the attached assets are confirmed by the PMLA adjudicating authority, they are formally confiscated by the agency. The details of these properties are then shared with the Justice Lodha Committee, which was appointed by the Supreme Court specifically to oversee the process of disposing of properties and facilitating refunds to affected investors.
The committee's mandate includes ensuring that the proceeds from the sale of attached assets are distributed fairly among the millions of investors who lost their hard-earned money in what has emerged as one of India's largest financial fraud cases in recent history.
