PACL chit fund scam: 1.27 million investors get back a total of Rs438 crore

The R.M. Lodha committee has been processing applications received from investors in a phased manner, slab wise, and currently applications with claim amount up to Rs10,000 have been processed and payments have been effected in respect of eligible claim applications. (Aniruddha Chowdhury/Mint)Premium
The R.M. Lodha committee has been processing applications received from investors in a phased manner, slab wise, and currently applications with claim amount up to Rs10,000 have been processed and payments have been effected in respect of eligible claim applications. (Aniruddha Chowdhury/Mint)
 1 min read . Updated: 27 Apr 2021, 04:26 PM IST Staff Writer

The Securities and Exchange Board of India (Sebi) on Tuesday said that 1,270,849 investors of PACL Ltd, with claims of up to Rs10,000, have been returned a total of Rs438 crore as of 31 March 2021.

PACL was banned in 2015 by the regulator for illegally collecting at least Rs49,100 crore from 58 million investors over 18 years. In 2015, the Supreme Court had formed a panel under retired Justice R. M. Lodha to dispose of PACL’s assets and refund the money.

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The committee had called for submission online by investors of PACL of applications for refund through a press release dated 8 February 2019.

“The committee has been processing applications received from investors in a phased manner, slab wise, and currently applications with claim amount up to Rs10,000 have been processed and payments have been effected in respect of eligible claim applications. The payments are processed after verification of documents uploaded by the investors along with their applications and payment amount calculated accordingly," Sebi said in a note.

The committee has from time to time provided investors, whose applications were found deficient, an opportunity to check status or deficiencies in their applications and make good the deficiencies so that the applications could be processed. The last such opportunity was provided up to 31 March 2021. At present, the facility to rectify the deficiencies in the claim applications is not available and investors may await further notification from the committee in this regard.

According to the regulator, the applications where investors have indicated or marked land allotted field as “Yes" or where land has been allotted to the investor as per records provided by PACL, have been kept on hold and will be taken up for consideration at a later stage.

Moreover, processing of cases where "deferred or endorsed" has been mentioned on the PACL certificate has also been kept on hold.

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