Sebi orders PACL to return $8.1b raised from investment scheme

Tags: News
The Securities and Exchange Board of India (SEBI), India's capital markets regulator, has ordered property developer PACL Ltd to return at least $8.1 billion raised from retail investors after finding the company had failed to register its land investment scheme.

The action by the SEBI marks the country's continued scrutiny of companies which raise funds from mostly low-income investors by offering higher interest rates than available on bank savings accounts.

According to the SEBI Order, PACL ran an investment scheme that promised depositors returns on investments in agricultural land. The regulator said the company allowed investors to deposit money in instalments or in a lump sum, guaranteeing returns after a fixed tenure.

Phone calls from Reuters to PACL's office were unanswered.

The amount that PACL has been ordered to return would be well above the $3.7 billion in deposits Kolkata-based media conglomerate Saradha was ordered to return last year, after running an unlawful deposit scheme that went bust.

In a 92-page order issued on Friday, SEBI said PACL's investment product qualified as a so-called collective investment scheme, or deposit-taking payment plan, which should be registered with the regulator.

Although SEBI did not specify how much money PACL would need to return to investors, it estimated the amount raised under the scheme amounted to 491 billion rupees ($8.1 billion), collected from 58.5 million customers.

It said the amount raised could be higher, but it had not obtained records from the company for the period from April 2012 to February 2013.

The regulator said all money raised from the plan would need to be returned to investors within three months and barred the company and its executives from raising any additional money.


  • All the debates are glossing over the key question if children are eating healthy food

    For some time now, we have been strapped in noodle debates. First Maggie noodles and now our own swadeshi noodles that Baba Ramdev is making.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Amita Sharma

Smart cities for the smart citizens

The 21st century has been spoken of as the urban ...

Zehra Naqvi

Baby and you

Every person who’s had a chance to be a parent ...

Bubbles Sabharwal

Women of the world, unite for a change

Last week I attended the Women in the World forum ...


William D. Green

Chairman & CEO, Accenture