PACL case: Sebi forms panel led by R M Lodha
Sebi has constituted the panel, chaired by former Chief Justice of India R M Lodha, following directions from the Supreme Court for selling land owned by PACL to refund investors’ money. The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against PACL as well as its promoters and directors, including Nirmal Singh Bhangoo, for their failure to refund Rs 49,100 crore to investors.
On February 2, the apex court had directed Sebi to constitute a committee under the chairmanship of Lodha, for disposing of the land purchased by PACL. The sale proceeds would be used to pay investors, who have invested in the company for purchase of the land.
Sebi’s Whole Time Member S Raman and Chief Manager Amit Pradhan would be part of the panel. Pradhan is also Regional Director, Northern Regional Office. Besides, the regulator has appointed Deputy General Manager Rakesh Kumar Singh as the nodal officer cum secretary of the committee. He would be in-charge of the funds so collected, according to a statement.
PACL, which had raised money from public in the name of agriculture and real estate businesses, was found by Sebi to have collected over Rs 49,100 crore through illegal collective investment schemes over a period of 18 years.