New Delhi, June 9: In a significant development in one of India’s largest collective investment fraud cases, the Enforcement Directorate (ED) has facilitated the restitution of 282 immovable properties belonging to PACL Ltd., having an estimated current market value of ₹9,420.57 crore, to the Justice R.M. Lodha Committee. The move is aimed at accelerating the refund process for lakhs of investors who allegedly lost their savings in the PACL scheme.
The restitution has been ordered by the Special Court under the Prevention of Money Laundering Act (PMLA), marking a major milestone in the long-running investigation into the PACL scam.
According to the ED, the Special Court directed that the 282 immovable properties be transferred to the Justice Lodha Committee, which was constituted under the directions of the Supreme Court to oversee the liquidation and sale of PACL assets and facilitate refunds to investors.
The PACL case traces its origins to allegations that PACL Ltd. and its promoters operated a large-scale illegal collective investment scheme across the country. As per the chargesheets filed by the Central Bureau of Investigation (CBI), PACL mobilized more than ₹68,000 crore from investors through various land-linked investment schemes.
Investigators alleged that investors were induced to invest through cash-down payments and installment-based plans with promises linked to land ownership. In many instances, registration and allotment letters were issued without actual ownership of the underlying land, leading to substantial financial losses for investors.
The ED stated that despite years of recovery efforts, approximately ₹48,000 crore remains unpaid to investors.
The money laundering investigation was initiated following an ECIR registered by the ED on July 26, 2016, under the provisions of the Prevention of Money Laundering Act, 2002. The case was based on scheduled offences linked to PACL Ltd., PGF Ltd., and associated individuals.
During the investigation, ED officials found that proceeds of crime were allegedly diverted through a complex network of interconnected entities controlled by late PACL founder Nirmal Singh Bhangoo, his family members, and close associates. According to investigators, these funds were subsequently used to acquire immovable properties across India and abroad through companies, relatives, and proxy entities.
The agency informed that during the current financial year alone, properties worth approximately ₹1,595.85 crore have been attached, taking the total value of assets attached in the PACL case to ₹28,626 crore.
These attached assets include properties located across India as well as overseas jurisdictions, including Australia. Many of the properties were allegedly held in the names of PACL group entities and family members of late Nirmal Singh Bhangoo, including daughter Barinder Kaur, son-in-law Harsatinder Pal Singh Hayer, daughter Sukhwinder Kaur, son-in-law Gurpartap Singh, and wife Prem Kaur.
The ED had earlier filed a prosecution complaint before the Special Court (PMLA) on September 10, 2018, which subsequently took cognizance of the offences.
Apart from the money laundering proceedings, Fugitive Economic Offender (FEOA) proceedings have also been initiated against Sukhwinder Kaur and Gurpartap Singh. The agency has arrested key accused Harsatinder Pal Singh Hayer, while non-bailable warrants have been issued against Barinder Kaur and Prem Kaur.
The case itself stems from a Supreme Court order dated February 2, 2016, in the matter of Subrata Bhattacharya vs SEBI, wherein the apex court directed SEBI to constitute a committee under the chairmanship of former Chief Justice of India Justice R.M. Lodha to oversee the disposal of PACL assets and ensure refunds to investors.
The ED described the restitution of the 282 properties as a crucial step towards the recovery and return of proceeds of crime to affected investors and reiterated its commitment to identifying, attaching, and restoring assets linked to the PACL scam.
Further investigation in the case remains underway.
