Court seeks SEBI response on Pearls Group CMD Bhangoo’s plea

A Delhi court has directed the Securities and Exchange Board of India (SEBI) to respond to a plea by Pearls Group CMD Nirmal Singh Bhangoo, seeking a stay on proceedings in a case, in which his firm has allegedly collected Rs 49,100 crore from investors in the name of investment schemes – violating the law.

Additional Sessions Judge Arvind Kumar issued notice to SEBI for February 11 on Bhangoo’s plea, which claimed that the regulator’s complaint was based on the same allegations as that of an FIR lodged by the Central Bureau of Investigation (CBI) and he cannot be tried twice for the same alleged offence.

“Put up on February 11 for reply and arguments on the application filed by counsel for accused no. 6 (Bhangoo),” the court said. The court had earlier taken cognizance of the SEBI’s complaint and summoned as accused Pearl Agrotech Corporation Ltd (PACL), its promoters and directors, Bhangoo, Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Joginder Tyger, Gurnam Singh, Anand Gurwant Singh and Devinder Kumar Uppal.

Bhangoo, Sukhdev, Gurmeet and Bhattacharya did not appear in person and were represented through counsel as they are in CBI custody till Saturday in the other case, while summons could not be served on Tarlochan, Tyger, Gurnam, Anand and Uppal. The firm was also represented through its counsel.

The court has issued fresh summons against Tarlochan, Tyger, Gurnam, Anand and Uppal. SEBI’s counsel Sanjay Mann said he will move an application for the issuance of a production warrant once the four are sent to judicial custody in the CBI case.