ED Returns ₹15,000 Crore Assets in Pearls Group Fraud Case
Relief for PACL investors as ED transfers ₹15,582 crore worth properties to Justice Lodha Committee for refund process
New Delhi, Mar 31: The Enforcement Directorate (ED) on Monday announced the transfer of assets valued at over ₹15,000 crore to a Supreme Court appointed panel, marking a major step towards compensating investors affected by the PACL (Pearls Group) scam.
According to the agency, a special court under the Prevention of Money Laundering Act (PMLA) has ordered the restitution of 455 immovable properties, currently valued at around ₹15,582 crore, to the Justice R.M. Lodha Committee. The committee has been tasked with overseeing the refund process for investors who were allegedly defrauded.
The PACL scam, estimated at nearly ₹48,000 crore in unpaid dues, is among the largest financial frauds in the country. The ED clarified that restitution under the PMLA framework enables recovery of assets and their return to affected parties, including depositors and other victims.
The investigation, initiated in July 2016, is based on a Central Bureau of Investigation (CBI) case registered in 2014 following Supreme Court directions. The case named PACL Ltd, its late promoter Nirmal Singh Bhangoo, and several associates. Bhangoo passed away in August 2024.
Earlier, in 2016, the apex court had directed SEBI to form a committee under former Chief Justice of India R.M. Lodha to supervise the disposal of assets and ensure repayment to investors.
During the course of the probe, the ED has attached properties worth approximately ₹27,030 crore linked to PACL, its affiliated entities, and family members of the promoter.
Officials said the accused entities operated an illegal collective investment scheme, mobilising over ₹60,000 crore from investors nationwide by promising returns through agricultural land deals. However, in most cases, neither land was delivered nor returns paid.
The latest restitution order is expected to significantly accelerate the recovery process for lakhs of affected investors. The ED reiterated its commitment to tracing and returning proceeds of crime under the legal framework.
So far, the agency has filed five prosecution complaints in connection with the case.
