PACL fraud: ED seizes 247 properties worth Rs 10,021 crore in Punjab

The ED has provisionally attached 247 properties valued at Rs 10,021.46 crore in the PACL Ltd fraud case, its highest single attachment ever. The properties, located in Punjab, were acquired with investor funds constituting proceeds of crime.

The Enforcement Directorate (ED) has provisionally attached 247 immovable properties valued at Rs 10,021.46 crore in connection with its ongoing investigation into a large-scale financial fraud involving a collective investment scheme operated by PACL Ltd and related entities-- the highest single provisional attachment ever in terms of value and number of properties.

The attached properties are located in SAS Nagar, Rupnagar, Zirakpur, and Mohali, in Punjab. These assets were attached under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. ED said these 247 attached properties were identified as having been acquired with investor funds, constituting Proceeds of Crime. With this attachment, ED has so far attached movable and immovable properties worth approximately Rs 17,610 crore, including assets located in India and abroad. As per an ED official, it's the highest single provisional attachment ever in terms of value and number of properties.

Background of the Investigation

ED's Delhi Zonal Office-II office attached the 247 immovable properties based on the investigation following the FIR dated February 19, 2014, registered by the Central Bureau of Investigation (CBI), New Delhi, under Sections 120-B and 420 of the Indian Penal Code, 1860. The FIR was registered pursuant to directions of the Supreme Court of India. Subsequently, the CBI filed a charge sheet and a supplementary charge sheet against 33 accused, including individuals and companies, for their role in operating an illegal investment scheme.

Details of the Fraudulent Scheme

According to the CBI charge sheets, the accused entities and individuals operated a massive illegal collective investment scheme, fraudulently mobilising over Rs 48,000 crore from lakhs of investors across India under the pretext of the sale and development of agricultural land. ED said investors were induced to invest under cash-down payment and instalment-payment plans and were made to sign misleading documents, including agreements, powers of attorney, and other instruments. In most cases, ED said, land was never delivered, and approximately Rs 48,000 crore remains unpaid to investors. "The scheme involved the use of multiple front entities and reverse sale transactions to conceal the fraud and generate wrongful gains."

Supreme Court Intervention and Further Irregularities

After registration of the FIR, the Supreme Court of India, vide order dated February 2, 2016, directed SEBI to constitute a committee under the chairmanship of former Chief Justice of India, Justice R. M. Lodha, to dispose of the land purchased by PACL and to distribute the sale proceeds to the investors. However, the ED said, further investigation revealed continued illegal dissipation of PACL assets, leading to registration of three additional FIRs by the Punjab Vigilance Bureau, Jawahar Circle Police Station, Jaipur, and Attibele Police Station, Bengaluru, for illegal sale, encroachment, and misuse of land acquired using investor funds. The agency said the searches conducted in these cases resulted in the seizure of incriminating materials, including blank sale deeds, signed cheque books, and identity documents, indicating systematic attempts to siphon and dispose of the proceeds of crime.

ED's Action Under PMLA

ED recorded an ECIR in 2016 and filed a Prosecution Complaint in 2018, followed by three Supplementary Prosecution Complaints in 2022, 2025 and 2026, against various accused persons and entities involved in laundering the Proceeds of Crime. The special PMLA court has taken cognisance of all prosecution complaints filed so far. (ANI)

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