ED arrests former Pearls group chief's son-in-law in Rs 48,000 crore fraudulent case

New Delhi [India], March 22 (ANI): The Enforcement Directorate (ED) has arrested Harsatinder Pal Singh Hayer, the son-in-law of the late Nirmal Singh Bhangoo, former chief of Pearls group in a Rs 48,000 crore fraudulent case, the agency said in a statement on Saturday.
ED's Delhi zonal office arrested Hayer under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, on March 21 in connection with the case of PACL Limited, also known as "Pearls," a real estate company that was founded in 1996 and faced scrutiny for allegedly illegally collecting funds from investors, leading to a ban by Securities and Exchange Board of India (SEBI). He was produced before a special Prevention of Money Laundering Act (PMLA) court which has remanded him to ED custody.
ED initiated an investigation based on the First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) under Sections 120-B and 420 of the Indian Penal Code, 1860, against PACL India Limited, PGF Limited, Nirmal Singh Bhangoo, and others. "They were involved in operating fraudulent investment schemes to deceive investors. Through these schemes, PACL and its Directors defrauded investors of approximately Rs 48,000 crore," said the ED in a statement.

ED investigation revealed that Hayer was a Director in several associate companies of PACL Limited, including two Australian entities-- Pearls Australasia Pty Ltd and Australasia Mirage I-Pty Ltd.
"PACL and its associates diverted Rs 657.18 crore of the Proceeds of Crime (POC) to these Australian entities controlled by Harsatinder Pal Singh Hayer," said the federal agency.
"These funds were then invested by the Australian companies in various real estate properties in Australia. Further, Harsatinder Pal Singh Hayer was also dissipating the properties (POC) of PACL and its related entities in violation of a Supreme Court order dated 25th July 2016."
In this case, ED had already attached two immovable properties in Australia valued at Rs 462 crore and various movable and immovable properties worth Rs 244 crore in India. These asset details have been shared with the Justice Lodha Committee, appointed by the Supreme Court, for overseeing the process of property disposal and restituting the money to investors.
Furthermore, the ED has filed two Prosecution Complaints in the case against PACL, Nirmal Singh Bhangoo and others. (ANI)