The Supreme Court of India has directed the Securities and Exchange Board of India (SEBI) and the court-appointed expert panel led by former Chief Justice RM Lodha to provide the latest details on the sale of assets belonging to Pearls Agrotech Corporation Ltd (PACL). The court is particularly interested in the current status of refunds to investors and outstanding dues yet to be paid.

PACL and its key figures, including Nirmal Singh Bhangoo, have been embroiled in a protracted legal battle over allegations of failing to refund a staggering Rs 49,100 crore collected through chit fund schemes to investors.

The bench, consisting of justices Bela M Trivedi and Pankaj Mithal, recently took note of senior advocate Pratap Venugopal's submission on behalf of SEBI. Venugopal assured the court that SEBI is willing to file a comprehensive report detailing the steps taken thus far, along with the findings of the expert committee led by Justice Lodha.

Acknowledging Venugopal's statement, the bench has requested information on the proceedings conducted by SEBI and the expert panel. Additionally, the court seeks specifics on the money realized from the sale of PACL's assets, the amount disbursed, and the outstanding dues owed to investors. The next hearing on the matter is scheduled for February 13.

Simultaneously, the court has extended the tenure of R S Virk, a former district judge, until March 31. Virk has been tasked by the expert committee to address objections to the proposed sale of PACL properties, aiming to generate funds for the repayment of investors.

This legal saga began with SEBI's final order on August 22, 2014, which found that PACL had mobilized Rs 49,100 crore in violation of SEBI Collective Investment Schemes (CIS) Regulations. The order directed PACL to wind up its chit-fund schemes and refund the collected money along with returns to investors. Despite PACL's appeal being dismissed by the Securities Appellate Tribunal on August 12, 2015, recovery proceedings were initiated against PACL, its promoters, directors, and their attached bank and demat accounts.

The matter eventually reached the Supreme Court, which, on February 2, 2016, directed SEBI to establish a committee under the chairmanship of former Chief Justice Lodha. The committee's purpose was to dispose of the land parcels acquired by PACL, ensuring that the sale proceeds could be used to repay investors.

As of August 2022, the Justice Lodha Committee had recovered Rs 878.20 crore by selling immovable assets of PACL to refund cheated investors, according to information from the Central Bureau of Investigation (CBI). The CBI, which investigated alleged illegal money mobilization, handed over 42,950 property documents and 79 luxury cars, including Rolls Royce, Porsche Cayenne, Bentley, and BMW 7-series, to the committee.

PACL, also known as Pearl Group, had raised funds from the public for agriculture and real estate businesses. SEBI found that the company had collected over Rs 49,100 crore through illegal collective investment schemes over an 18-year period.