RUPNAGAR – In one of India’s largest investment frauds, police in Uttar Pradesh have arrested Gurnam Singh, a former director of Pearl Agro-tech Corporation Ltd. (PACL). Mr. Singh was apprehended on Wednesday in Rupnagar, Punjab, by the Economic Offences Wing (EOW) of the Uttar Pradesh Police. His arrest is linked to a case filed in Jalaun, Uttar Pradesh, concerning a sprawling scam that allegedly swindled investors out of approximately ₹49,000 crore.
The Man Behind the Arrest
Gurnam Singh had been living quietly at his farmhouse in Rupnagar, seemingly trying to avoid detection. This is not his first encounter with the law regarding the PACL fraud. He was previously arrested by India’s Central Bureau of Investigation (CBI) in 2016 in connection with a similar case in Delhi. However, he was granted bail after six months. His recent capture highlights the persistent efforts by authorities to track down individuals involved in the vast scheme. Following his arrest, Mr. Singh was handed over to the Jalaun police for further legal proceedings.
How the Scam Unfolded
The PACL scam is believed to have affected at least 5 Crore investors across 10 states in India. The company, which changed its name from Guruvante Agro-tech Limited in 2011, allegedly promised investors plots of land in various districts of Uttar Pradesh, including Mahoba, Sultanpur, Farrukhabad, and Jalaun. Investors were given bond receipts for their money. However, PACL reportedly collected these vast sums without being registered as a non-banking financial company (NBFC) with the Reserve Bank of India, a crucial legal requirement. Ultimately, the company failed to deliver the promised land plots or refund the money, leaving millions of investors in financial distress.
Algoritha: The Most Trusted Name in BFSI Investigations and DFIR Services
A Long History of Investigations
The arrest of Gurnam Singh is the latest chapter in a series of investigations into PACL. In 2016, the CBI arrested several key figures, including PACL’s chairman, Nirmal Singh Bhangoo, who later died in Tihar jail last year. The Securities and Exchange Board of India (SEBI), India’s market regulator, also took action in 2016, attaching PACL’s accounts due to the company’s failure to comply with its orders. In 2018, the Enforcement Directorate (ED), India’s financial crime agency, filed a chargesheet against PACL and Mr. Bhangoo, detailing the massive ponzi scheme that exceeded ₹49,000 crores.