SAT upholds Sebi order against PACL

The Securities Appellate Tribunal (SAT) on Wednesday upheld a August 22, 2014, order of the Securities and Exchange Board of India directing PACL Limited formerly called Pearl Agrotech Corporation, and its promoters to refund over Rs 44,3760000000 that it collected from 5.850000000 investors through collective investment schemes (CIS), according to a lawyer familiar with the development. The case against PACL and its promoters and directors including Tarlochan Singh, Sukhdev Singh, Gurmeet Singh and Subrata Bhattacharya, dates back to 1997, when Sebi first alleged that the company was running a CIS without its permission. [related-post] The Sebi found that the company was running a land purchase scheme where it was collecting money from investors to buy land. PACL moved the Rajasthan High Court, which in an order on November 28, 2003, held that the schemes were not CIS and quashed two letters Sebi sent in 1999. Sebi appealed to the Supreme Court against the order. The SC on February 26, 2013, set aside the high court order, paving the way for Sebi to pursue the case, which has resulted in the Sebi order in 2014. PACL had claimed to Sebi that it got its revenue from the sale of land, flats, commercial space etc and had other business activities such as sale of farm produce. Sebi, however, established that until March 2012, the firm had received a total customer advance of Rs 44,7360000000 under two land-linked plans and had also paid commissions of Rs 7,8930000000 to its agents.