Article Today, Lucknow:
The country has been jolted by one of its largest-ever financial scams. PACL Limited (Pearl Agrotech Corporation Ltd) is accused of defrauding investors to the tune of ₹49,000 crore. The scale of the fraud, which affected over five crore small investors across India, has left both authorities and victims in disbelief.
Arrest of Former Director Sparks New Momentum
On Friday, the Uttar Pradesh Economic Offences Wing arrested PACL’s former director, Gurnam Singh. His arrest is expected to unravel further details of the massive operation. Police officials say Singh played a key role in mobilising funds from unsuspecting citizens, particularly in rural and middle-class communities.
Bond Receipts Without RBI Approval
PACL reportedly collected funds by issuing bond-like receipts to investors without registering as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India. The company promised land allotments or high returns, but failed to deliver either. Investigators say the scam ranks among the largest illegal investment schemes in Indian history.
Ongoing Investigations Since 2018
The Enforcement Directorate filed a chargesheet against PACL and its chief Nirmal Singh Bhangoo in 2018. Authorities allege that the company used an elaborate network to lure investors across ten states, including Andhra Pradesh and Uttar Pradesh. Gurnam Singh’s arrest has renewed momentum in the investigation, with more arrests likely.
A Pattern of Exploiting Common Citizens
This scam follows a series of financial frauds that have shaken public trust in investment channels. In West Bengal, the Saradha Group chit fund scam left lakhs of small investors penniless. Similarly, the 2018 Punjab National Bank scam, involving jeweller Nirav Modi, led to a loss of ₹13,000 crore through fraudulent Letters of Undertaking.
Calls for Transparency and Regulation
The PACL case adds to rising concerns about transparency in financial dealings. The Supreme Court recently struck down electoral bonds, questioning the opacity in political funding. Allegations of stock market manipulation involving the Adani Group, as flagged in the Hindenburg Research report, further underline the need for strict regulatory oversight.
The Road Ahead for Victims
For the millions who trusted PACL with their savings, justice remains elusive. Many of them continue to fight legal battles or await compensation. As the investigation deepens, authorities face mounting pressure to ensure accountability and prevent similar frauds in future.
