SEBI Claims Pearl Agrotech Siphoned Off $98 Million
SEBI Seeks Australian Govt’s Help in the PACL Case
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- SEBI seeks Australian government’s help in PACL case.
- Supreme Court issues notice to Centre on SEBI’s plea.
- Supreme Court restrains PACL from selling India & overseas assets.
- Supreme Court to hear the case next on August 2.
The Securities and Exchange Board of India alleged in the Supreme Court on Monday that Pearl Agrotech Ltd. siphoned off $98 million in Australia.
The market regulator sought the court’s permission to take help from the Australian government to restrain the sale of PACL’s overseas assets. “Investors have moved an Australian court and sought injunction against assets sold by PACL for $140 million. Of the $140 million, injunction has been granted against $92 million,” the SEBI counsel said in court.
The apex court has issued a notice to the central government on SEBI’s plea seeking Australian government’s assistance in the case. Reiterating its earlier order, the apex court restrained PACL and its promoters from selling any of their Indian or overseas assets without the permission of the court appointed panel.
The Supreme Court had appointed a panel led by former Chief Justice of India, Justice RM Lodha, to oversee the sale of PACL’s assets. The panel is also overseeing the refund of Rs 49,000 crore by the company to its investors.
The case relates to PACL allegedly duping over five crore investors through its collective investment scheme, which was held illegal by SEBI.
The market regulator had asked PACL to wind up its schemes and refund investors in August 2014. This order was challenged by PACL in the Securities Appellate Tribunal, which upheld the SEBI order in 2015. PACL and its promoters then challenged the tribunal’s order in the apex court.
The Supreme Court will next hear all cases related to PACL on August 2.