ED Intensifies Crackdown on PACL Scam with Major Asset Attachments in Punjab and Rajasthan
In a significant development in the long-running Pearls Agro-Tech Corporation Limited (PACL) investment fraud case, the Enforcement Directorate (ED) has attached 37 immovable properties valued at a staggering Rs 1,986.48 crore located in Ludhiana, Punjab, and Jaipur, Rajasthan. This latest action marks a crucial step in the agency's ongoing money laundering probe into one of India's largest financial scams.
Details of the Latest Attachment and Total Seizures
The ED spokesperson announced on Monday that the properties were attached under the Prevention of Money Laundering Act (PMLA), 2002. "With this seizure, the ED's total attachments in the case – covering movable and immovable assets in India and abroad – now stand at approximately Rs 7,589 crore," the spokesperson stated. This brings the cumulative value of assets seized in connection with the PACL fraud closer to the Rs 7,600 crore mark, reflecting the scale of the investigation.
The attached assets are linked to a collective investment scheme that allegedly defrauded investors of over Rs 60,000 crore nationwide. "The scheme, run by M/s PACL Ltd and related entities, promised agricultural land development, but delivered little, leaving around Rs 48,000 crore unpaid," the spokesperson explained, highlighting the massive financial impact on lakhs of investors.
How the PACL Scam Operated and Regulatory Violations
PACL allegedly lured investors with promises of plots and high returns through fake real estate schemes. Crucially, the company operated without being registered as a Non-Banking Financial Company (NBFC), in direct violation of the Reserve Bank of India (RBI) Act. The fraudulent model relied heavily on a Ponzi-like structure:
- Early investors were paid using funds collected from new investors
- Agents earned substantial commissions for bringing in investments
- Recruitment strategies encouraged agents to involve family and friends
Investigation Timeline and Money Trail Findings
The ED's probe stems from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI). The agency registered an Enforcement Case Information Report (ECIR) in 2016, filed a prosecution complaint in 2018, and submitted two supplementary complaints in 2022 and 2025. All these documents have been taken cognizance of by the special PMLA court.
The investigation has uncovered a complex money trail. "The ED investigation has found that investor funds, collected via cash down payments and instalments, were routed through shell entities and credited to accounts of the late Nirmal Singh Bhangoo, his family, and associates," the spokesperson revealed. These illicit proceeds were then used to purchase the properties that have now been attached as proceeds of crime.
Legal Proceedings and Outstanding Warrants
Despite the progress in asset recovery, legal proceedings continue. Non-bailable warrants remain pending against several key individuals connected to the case:
- Prem Kaur (wife of late Nirmal Singh Bhangoo)
- Barinder Kaur (daughter)
- Sukhwinder Kaur (daughter)
- Gurpratap Singh (son-in-law)
- Prateek Kumar (associate)
The ED's latest action demonstrates the agency's continued commitment to pursuing the proceeds of crime in this massive investment fraud that has affected countless investors across India. The attachment of high-value properties in major cities like Ludhiana and Jaipur represents another step toward recovering funds for defrauded investors and holding perpetrators accountable under money laundering laws.
