PACL to appeal to SAT against Sebi’s Rs 49,100-cr order
A spokesperson of PACL Ltd. has revealed that the company has plans underway to file an appeal with the Securities Appellate Tribunal (SAT) against a Sebi order pertaining to the return of a record Rs 49,100 crore to investors in three months.
PACL collects money from investors, and invests that money in cheap land which has an apparent potential to witness changes in end-use. Once the projected changes take place, the cheap land becomes a goldmine which is monetized by PACL for paying 12.5 percent interest to investors.
In the past few years, PACL – headed by Nirmal Singh Bhangoo – has executed real estate projects in Noida, Delhi, Mohali; and it also presently has a number of townships and residential projects in progress at different locations across India.
PACL has been engaged in prolonged litigation since 1999 when stock market regulator Sebi notified rules governing collective investment schemes (CIS).
With regard to PACL’s plans to appeal to SAT against Sebi’s Rs 49,100-crore order, the company spokesperson said: “PACL limited, in its submission to the Honourable SEBI bench had submitted that it is not running a collective investment scheme (CIS).”
The spokesperson further added: “The company has sufficient asset holdings vis-à-vis the money raised for its real estate business. SEBI has unfortunately failed to recognise the submissions of the company that it can’t be treated like a CIS. The company would now appeal this order before the Securities Appellate Tribunal.”
Source – The Economic Times
collective investment scheme, Honourable SEBI, Nirmal Singh Bhangoo, PACL, PACL Ltd, SAT, SEBI, Securities Appellate Tribunal
