A sprawling financial scandal that echoes some of India’s most infamous corporate frauds came into sharper focus on Friday with the arrest of Gurjant Singh, a director of Pulse Agro Tech Corporation Limited. Authorities allege the company orchestrated a vast Ponzi-style scheme, defrauding investors across ten states of more than ₹49,000 crore.
Singh was detained in Mohali, Punjab, following an investigation led by the Economic Offences Wing (EOW). Officials say the company lured thousands of small and middle-income investors with promises of land ownership and lucrative returns, only to default on both.
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The Structure of the Alleged Scam
Pulse Agro Tech, incorporated in Rajasthan in 2011, rapidly expanded into states including Uttar Pradesh, Bihar, Jharkhand, Haryana, Madhya Pradesh, and Uttarakhand. Without authorization from the Reserve Bank of India or registration as a Non-Banking Financial Company (NBFC), the firm reportedly opened branches and collected deposits from the public.
Marketing campaigns promised land parcels and attractive real-estate-linked returns. Investors were shown glossy brochures and deeds, officials said, but delivery of land or repayment of capital never materialized. Instead, deposits were siphoned into a multi-tiered network of shell accounts and proxy entities.
Over 25 First Information Reports (FIRs) have been registered across several states, and investigators expect that number to grow as more victims come forward. The EOW has indicated that Singh’s arrest marks the beginning of a wider crackdown targeting the company’s other directors and associates.
Broader Context and Investor Fallout
India has seen a troubling pattern of large-scale deposit frauds over the past two decades, from Sahara to the Pearl Group, which devastated millions of families. Such cases often highlight systemic vulnerabilities: inadequate regulation of non-banking entities, gaps in financial literacy, and the ability of promoters to exploit rural and semi-urban populations with little awareness of investment risks.
Triveni Singh, a former IPS officer and expert on financial cybercrime, noted that the sheer magnitude of the Pulse Agro Tech case underscores its gravity. “Ponzi schemes prey on the most vulnerable investors. When companies vanish after collecting deposits, it not only ruins families but also erodes trust in India’s financial system. This ₹49,000 crore case is a wake-up call for stronger investor protections,” he said.
For now, thousands of defrauded families await clarity on whether recovery is possible, or if this case will join the long list of unresolved financial scandals in India’s corporate history.