ED launches refund drive for Rs 60 million investors in Pearl Group scam
ECONOMY & POLICY

ED launches refund drive for Rs 60 million investors in Pearl Group scam

The Enforcement Directorate (ED) has launched an initiative to return lost funds to nearly sixty million investors who were impacted by the Rs 500 billion Pearl Group Ponzi scheme.

The agency stated that it had provided details of assets worth Rs 7 billion belonging to Pearl Agro Group to the Justice Lodha Committee. This committee, appointed by the Supreme Court, is responsible for overseeing the sale of seized assets and the restitution of funds to the scam’s victims.

The Securities and Exchange Board of India (SEBI) had previously banned Pearl Group for "illegally collecting Rs 491 billion from 59 million investors over a span of 18 years." The investigation began a decade ago, following the Central Bureau of Investigation’s (CBI) registration of an FIR in February 2014.

According to ED’s investigation, the promoters of Pearl Group had created a Ponzi scheme, promising investors land allotments but instead diverting the funds into shell companies registered in Kolkata. These funds were then withdrawn in cash and sent to Dubai through hawala channels. The money was subsequently invested in several countries for purchasing hotels and resorts. The money trail uncovered a significant investment in property acquisitions in Australia. In 2018, after successfully linking these illegal profits to PACL and its promoter Nirmal Singh Bhangoo, the ED attached two properties in Australia valued at Rs 4.62 billion. Four years later, assets worth Rs 2.44 billion linked to the group and Bhangoo’s associates were also seized in India.

The total value of these assets, some of which are held as financial instruments, may now exceed Rs 10 billion. The investigation is still ongoing, and last week, the ED conducted searches across 44 locations in Delhi, Haryana, Punjab, Maharashtra, Telangana, Karnataka, West Bengal, Rajasthan, and Uttarakhand, tracing the proceeds of the crime.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Enforcement Directorate (ED) has launched an initiative to return lost funds to nearly sixty million investors who were impacted by the Rs 500 billion Pearl Group Ponzi scheme. The agency stated that it had provided details of assets worth Rs 7 billion belonging to Pearl Agro Group to the Justice Lodha Committee. This committee, appointed by the Supreme Court, is responsible for overseeing the sale of seized assets and the restitution of funds to the scam’s victims. The Securities and Exchange Board of India (SEBI) had previously banned Pearl Group for illegally collecting Rs 491 billion from 59 million investors over a span of 18 years. The investigation began a decade ago, following the Central Bureau of Investigation’s (CBI) registration of an FIR in February 2014. According to ED’s investigation, the promoters of Pearl Group had created a Ponzi scheme, promising investors land allotments but instead diverting the funds into shell companies registered in Kolkata. These funds were then withdrawn in cash and sent to Dubai through hawala channels. The money was subsequently invested in several countries for purchasing hotels and resorts. The money trail uncovered a significant investment in property acquisitions in Australia. In 2018, after successfully linking these illegal profits to PACL and its promoter Nirmal Singh Bhangoo, the ED attached two properties in Australia valued at Rs 4.62 billion. Four years later, assets worth Rs 2.44 billion linked to the group and Bhangoo’s associates were also seized in India. The total value of these assets, some of which are held as financial instruments, may now exceed Rs 10 billion. The investigation is still ongoing, and last week, the ED conducted searches across 44 locations in Delhi, Haryana, Punjab, Maharashtra, Telangana, Karnataka, West Bengal, Rajasthan, and Uttarakhand, tracing the proceeds of the crime.

Next Story
Infrastructure Transport

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

Next Story
Infrastructure Energy

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Next Story
Infrastructure Transport

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?