Pacl India Limited: Is It A Safe Investment Option?

PACL India Limited, also known as Pearl Agrotech Corporation Limited, is a real estate development company incorporated in 1996 in Jaipur, India. The company is classified as a 'public unlisted company' and is primarily engaged in the real estate and renting business. In 2014, the Securities and Exchange Board of India (SEBI) ordered PACL to return billions of dollars to investors, as the company had been running an unregistered land investment scheme promising depositors returns on investments in agricultural land. The company has since been in the process of refunding investors, with the most recent update on the process released in 2024.

PACL India Limited's investment refund process

PACL (or Pearls) is one of India's largest Ponzi schemes, which was allowed to run for decades, amassing over Rs60,000 crore. The company presented itself as a real estate development company, involved in the sale and purchase of agricultural land. However, investigations revealed that PACL collected more than Rs60,000 crore through illegal collective investment schemes (CISs) over 18 years. The company mobilised funds by promising investors land allotments within 90 to 270 days of their investment, and if not, they would be paid handsome returns.

The Securities and Exchange Board of India (SEBI) is in the process of refunding investors who lost money to PACL. The Justice (Retd.) R.M. Lodha Committee, constituted by SEBI, is responsible for selling PACL's assets across the country and using the sale proceeds to refund investors. As of May 2023, the committee has successfully refunded over 1.96 million investors with claim amounts of up to Rs17,000, totalling more than Rs919 crore.

The committee has provided a facility for investors to check the status of their refund applications online and rectify any deficiencies. Investors with claims of up to Rs19,000 can check the status of their applications and make necessary corrections between March 14, 2024, and June 13, 2024.

It is important to note that the last date for the submission of original PACL certificates has expired, and investors are requested not to send their original certificates until further direction from the committee.

PACL's investment scheme

PACL Ltd, also known as Pearl Agrotech Corporation Limited, is a real estate development company incorporated in India on 13 February 1996. The company is registered in Jaipur, Rajasthan, and has a multi-dimensional portfolio ranging from commercial to retail and residential real estate. PACL also engages in the sale and purchase of agricultural land.

PACL offered an investment scheme that allowed individuals to deposit money in instalments or as a lump sum, promising returns on investments in agricultural land after a fixed tenure. The company's investment product was deemed a collective investment scheme or deposit-taking payment plan, which, according to the Securities and Exchange Board of India (SEBI), should be registered with the regulator.

In August 2014, SEBI ordered PACL to return at least $8.1 billion raised from retail investors, as the company had failed to register its land investment scheme. SEBI estimated that the amount raised through the scheme was approximately 491 billion rupees ($8.1 billion) from 58.5 million customers. The regulator instructed PACL to return all money raised from the plan to investors within three months and barred the company and its executives from raising any additional funds.

Following the SEBI order, a committee headed by retired Justice R.M. Lodha was established to oversee the refund process for investors. The committee has been working to sell PACL's properties and use the proceeds to refund investors. The committee has provided opportunities for investors to check the status of their claims and rectify any deficiencies in their applications.

PACL's brand name and customised complexes

PACL Limited, popularly known by its brand name "Pearls", is a real estate development company incorporated in Jaipur, India, on 13 February 1996. It has a multi-dimensional portfolio, including commercial, retail, and residential segments.

Pearls has undertaken the development of customised residential and commercial complexes, adhering to stringent quality policies and international standard infrastructure practices. The company is committed to delivering projects on time without compromising on international construction standards.

Their ongoing construction projects are spread across various cities in India, including Noida, Delhi, Zirakpur, Mohali, Bathinda, Mumbai, Pune, Vadodara, and Madurai. These projects encompass a diverse range of offerings, such as housing projects, townships, residential apartments, commercial complexes, shopping malls, farms, and farmhouses.

In addition to its real estate ventures, Pearls is also engaged in agricultural activities, leveraging its extensive land bank. Their agricultural endeavours are tailored to the geographical locations of their farms, with specific crops cultivated in different regions of India. For instance, in Northern India, they produce Wheat, Paddy, Babycorn, and Vegetables, while in the Southern States, they grow Mangoes, Pomegranate, Sapota, Amla, and Cashew Nuts, among other crops.

PACL's agricultural activities

PACL India Limited, also known as Pearls, is a real estate development company incorporated on 13 February 1996 in Jaipur, India. In addition to its real estate business, PACL is also involved in a range of agricultural activities and the sale and purchase of agricultural land.

PACL carries out various agricultural activities based on the geographical location of its farms across India. In Northern India, the company produces wheat, paddy, baby corn, and vegetables. Meanwhile, in the Southern states, PACL cultivates mangoes, pomegranates, sapota (or sapodilla), amla (or Indian gooseberry), and cashew nuts, among other fruits.

The company has a strong focus on research and development, which guides its agricultural practices. Through strategic alliances and associations with multinational corporations, PACL aims to enhance the quality and quantity of its mango production. For example, they have successfully grown export-quality baby corn in Punjab through such partnerships.

PACL's agricultural endeavours are supported by its significant land holdings. The Pearls Group, which leads the Indian property field, has a coveted focused land bank of over 1.5 million acres of agricultural, semi-urban, and urban land parcels. This vast land resource enables the company to engage in diverse agricultural activities and supply its produce across India.

PACL's board members and directors

PACL Limited is a public company incorporated on 13 February 1996 and is based in Jaipur, Rajasthan. It is classified as a non-government company and is registered at the Registrar of Companies, Jaipur. The company is involved in real estate activities with its own or leased property.

PACL Limited has four directors:

• Sukhdev Singh, who has been on the board since 5 May 1999, making him the longest-serving director. He also has the largest number of other directorships, holding a seat at 12 other companies. These include Hill Drive Jadibooti Farms & Research Private Limited, Sanchari Properties and Developers Limited, and Pearls Solar Energy Limited, among others.
• Harish Rajkumar Sharma, who was appointed on 30 October 2022, along with two other directors. He also serves as a director at Paeon Enterprise LLP.
• Ravindrasingh Parihar, who was appointed on 30 October 2022. He also serves as a director at Neelkamal Bhu-Rachana Developers Private Limited.
• Inderjeet Singh, who was appointed on 30 October 2022.

The company's Corporate Identification Number (CIN) is U70101RJ1996PLC011577, and its registered address is 22, 3rd Floor, Amber Tower, Sansar Chandra Road, Jaipur, Rajasthan, India - 302004.

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