PACL Depositor Alert! SEBI issues caution notice to depositors looking for refunds

For the process of refunds to investors of PACL having claim amount up to Rs 5,000 a Committee was set up.

SEBI has issued a caution notice to the depositors of PACL (Pearl Agrotech Corporation Limited) which had collected over Rs 60,000 crore from the public in the name of agriculture and real estate businesses through illegal collective investment schemes (CIS). SEBI had subsequently ordered attachment of all assets of PACL and its nine promoters and directors in December 2015 because of their failure to refund the money due to investors.

Thereafter, for the process of refunds to investors of PACL having claim amount up to Rs 5,000, a Committee headed by retired Justice R M Lodha was set-up.

SEBI in a recent notice has stated that the Committee has received information that a video has been uploaded by one NMG Rajasthan on YouTube on June 5, 2020, informing about a portal / mobile application of Janlok Prathistan and inviting investors to upload their claim application(s) using this Mobile App. The said Mobile App (JANLOK PACL DATA) is available at the Google Playstore and is claimed to be developed by Janlok Prathistan Sansthan. The Mobile App seems to be active since May 26, 2020 and further the sole purpose of the App is claimed to help investors of PACL to recover their claims due to them from PACL.

In its release, SEBI further says that the “ Committee alone has been entrusted with the task of effecting of refund to investors of PACL by the Hon’ble Supreme Court vide order dated 2nd February, 2016 in C.A. No. 13301/2015 and connected matters, and no other individual / entity is authorized to invite / collect claims from the investors of PACL Ltd. with a view to effecting refund-payment.

In view of the above, public at large is hereby cautioned and advised not to part with and/or share records/ documents of their investments in the schemes of PACL Ltd. either through the above mentioned portal / mobile application or with any other person/entity.

SEBI’s caution

The depositors are advised and cautioned not to share any information about their deposit with PACL with any other entity other than the Committee set-up for this task.

Investors in PACL or the depositors who had put in their money in the company and with claims up to Rs 5000 can check the status of their claim applications, and rectify errors, online on https://www.sebipaclrefund.co.in till July 31, 2020. The facility will help the markets regulator to initiate the process of refund on such applications.

Earlier, The Securities and Exchange Board of India (SEBI) in a statement in January had said, “The Justice (Retd.) R.M. Lodha Committee (the “Committee”) had initiated the process of refunds for investors of PACL having claim amount upto Rs. 5,000/- and till date 3,81,603 such investors/applicants have been paid. However, certain applications could not be processed further on account of one or more deficiencies. The Committee had vide press release dated December 03, 2019 informed that an opportunity will be provided to all investors/applicants with claims upto Rs. 5,000/-, whose claim applications were found deficient, to make good deficiencies as may be applicable to their claims, so as to enable their claims to be processed.”