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PACL Case: Sebi Invites Bids For Sale Of Properties

On the call of Bharat Bandh many natiolaisied bank were closed, SBI at Center street road (Anuj Stroy)Photo Snehil Sakhare DNA
On the call of Bharat Bandh many natiolaisied bank were closed, SBI at Center street road (Anuj Stroy)Photo Snehil Sakhare DNA

New Delhi: Looking to recover Rs 60,000 crore investors’ money in the PACL case, the Securities and Exchange Board of India (Sebi) on Friday invited fresh bids for sale of the group’s properties in 192 districts, for which 6,504 applications were received.

In a separate notice, state-run MSTC said it will hold an online auction on October 5 on behalf of Sebi for high-end vehicles of the group.

Sebi had put on sale 47 top-end vehicles owned by the group, including BMW, Audi, Porsche and Rolls Royce cars, on August 30. The regulator found buyers for 30 luxury vehicles.

PACL, which had raised money from the public in the name of agriculture and real estate businesses, was found by Sebi to have collected these funds through illegal collective investment schemes over 18 years.

Pursuant to an order by the Supreme Court, Sebi had set up a high-level committee to ensure refunds are made to genuine investors after sale of attached PACL assets.

The panel, chaired by former chief justice R M Lodha, is overseeing the process of disposing of assets to refund money to investors after verifying their genuineness.

Last month, the committee had invited public at large to submit expressions of interest (EoIs) for sale of properties in 192 districts. In this regard, 6,504 EoIs were received.

The committee has received 27,000 additional documents from authorities, following which the panel decided that public be provided further opportunity to submit expressions of interest.

“Persons who have already submitted EoI for any property earlier, need to submit EoI again for the same property,” the market regulator had said.

After receipt of EoI, the auction will be conducted within two months or such reasonable time as determined by the committee, Sebi had said.

“PACL, its subsidiaries, associate companies and their past or present directors, employees and agents are not eligible to participate in the auction process,” it had added.

Most of the properties being auctioned are in Punjab, Maharashtra, Madhya Pradesh and Rajasthan.

Last December, Sebi ordered attachment of all assets of PACL and its nine promoters and directors for their failure to refund more than Rs 60,000 crore due to investors – the biggest amount for any such case.

PACL had raised Rs 49,100 crore from nearly five crore investors that it needs to refund along with promised returns, interest payout and other charges, as per the Sebi order.

The proceedings were initiated against PACL as also its promoters and directors. Recovery proceedings were launched “for their failure to refund an amount of Rs 49,100 crore with return due to investors, along with further interest and all costs, charges and expenses incurred in the recovery proceedings”.

Sebi had asked them to refund the money in an order dated August 22, 2014. The defaulters were directed to wind up the schemes and refund money to the investors within three months from the date of the order.

PTI

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