Securities market regulator SEBI has constituted a three-member committee under the chairmanship of Justice R M Lodha, Former Chief Justice of India for disposing of the land purchased by Pearl Agrotech Corporation ltd (PACL) and refunding the proceeds to investors.

The other members of the committee include S Raman, Whole Time Member, SEBI and Amit Pradhan, Chief General Manager, SEBI.

The move follows a Supreme Court order dated February 2, 2016 which directed SEBI to do so.

SEBI also appointed Rakesh Kumar Singh, Deputy General Manager, SEBI, as the Nodal Officer (in-charge of the funds so collected)-cum-secretary of the committee following the Supreme Court’s directions.

In December 2015, SEBI initiated recovery proceedings against PACL for failing to refund ₹49,100 crore to investors. The action had been taken against 10 entities, including PACL and its promoters/directors.

Under the recovery proceedings, SEBI attached all bank and demat accounts, as well as mutual funds folios of the above entities with immediate effect and communicated the same to all banks, depositories and mutual fund houses.

The SEBI action came three months after the Securities Appellate Tribunal dismissed the appeal filed by PACL and its promoters/ directors against a SEBI order of August 22, 2014, directing them to wind up their collective investment scheme (CIS) and refund the monies to investors. SEBI said that the recovery notices were also sent to the defaulters.

Banks, financial institutions, depositories or any other persons holding assets of the defaulters were advised not to part with the same and report the same to the Recovery Officer, at SEBI’s Northern Regional Office.

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