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 These funds were then withdrawn in cash and sent to Dubai through hawala channels.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.

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

CPCL crosses $10 million revenue milestone

Chaitanya Projects Consultancy (CPCL), a leading infrastructure and engineering consultancy, has surpassed $10 million in annual revenue for FY 2024–25, marking a five-year compound annual growth rate of 28.2 per cent—well above the industry average. Established in 2004, CPCL has delivered over 300 projects across highways, bridges, urban infrastructure, water, transport, and environmental sectors. Its achievements include over 600 km of six-lane highways, 2,000 km of national highways, and 100 major bridges. “Our goal has always been to improve India’s infrastructure,” sai..

Next Story
Resources

KPIL secures new orders worth Rs 37.89 billion

Kalpataru Projects International Ltd (KPIL), a major EPC player in power transmission and civil infrastructure, has secured new orders worth approximately Rs 37.89 billion along with its international subsidiaries. The orders include a significant contract in the Buildings and Factories (B&F) segment in India, marking KPIL’s largest B&F order to date. The project involves the development of over 12 million sq ft of residential space with supporting infrastructure, awarded on a design-build basis. Additionally, the company has won new transmission and distribution (T&D) order..

Next Story
Real Estate

Apartment loading rises to 40 per cent in top cities

Driven by rising demand for premium amenities, the average apartment loading across India’s top seven cities has reached 40 per cent in Q1 2025, up from 31 per cent in 2019, according to ANAROCK Research. The loading factor, or the area paid for beyond the usable carpet area, covers common spaces such as lobbies, staircases, and clubhouses. Mumbai Metropolitan Region (MMR) continues to lead with the highest loading at 43 per cent. Bengaluru saw the sharpest jump, from 30 per cent in 2019 to 41 per cent in Q1 2025. Chennai recorded the lowest average loading at 36 per cent. “Sixty..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?