PRESS RELEASE - SEBI

August 26, 2014
PR No. 098/2014


Order in the matter of M/s. PACL Limited

Shri S Raman, Whole Time Member, Securities and Exchange Board of India (SEBI), has passed an order dated August 22, 2014 in the matter of PACL Limited. The following directions have been passed:-

  1. PACL Limited its promoters and directors including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr.Gurmeet Singh and Mr. Subrata Bhattacharya, shall abstain from collecting any money from investors or launch or carry out any Collective Investment Schemes including the schemes which have been identified as a Collective Investment Scheme in this Order.
     
  2. PACL Limited, its promoters and directors including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr.Gurmeet Singh and Mr. Subrata Bhattacharya, shall wind up all the existing Collective Investment Schemes of PACL Limited and refund the monies collected by the said company under its schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of this Order and thereafter, within a period of fifteen days, submit a winding up and repayment report to SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations, 1999, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging such refunds.
     
  3. PACL Limited and its directors, including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh and Mr. Subrata Bhattacharya are also directed to immediately submit the complete and detailed inventory of the assets owned by PACL Limited.
     
  4. PACL Limited, its promoters and directors including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr.Gurmeet Singh and Mr. Subrata Bhattacharya, shall not alienate or dispose off or sell any of the assets of PACL Limited except for the purpose of making refunds to its investors as directed above.
     
  5. In the event of failure by PACL Limited and its directors/ promoters to comply with the above directions, the following actions shall follow:
    • PACL Limited and its directors, including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh, Mr.Subrata Bhattacharya, Mr. Anand Gurwant Singh, Mr. Nirmal Singh Bhangoo, Mr. Uppal Devinder Kumar, Mr. Tyger Joginder and Mr. Gurnam Singh (R/o Wazidpur) shall immediately (on expiry of the three months period available for making refunds) be restrained from accessing the securities market and would further be prohibited from buying, selling or otherwise dealing in securities market till all the Collective Investment Schemes of PACL Limited are wound up and all the monies mobilized through such schemes are refunded to its investors with returns which are due to them.
    • SEBI would make a reference to the State Government/ Local Police to register a civil/ criminal case against PACL Limited, its promoters, directors and its managers/ persons in-charge of the business and its schemes, for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds; and 
    • SEBI would make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the company, PACL Limited.
    • Without prejudice to the above, SEBI shall also initiate attachment and recovery proceedings under the SEBI Act and rules and regulations framed thereunder.
       
  6. Further, for the reasons stated above in this Order, the SCN issued in respect of Mr. Gurnam Singh (R/o P.O.
    Singh Bhagwant Pur) is disposed off without any directions.

The above directions shall come into force with immediate effect.

Since, the Hon'ble Supreme Court has also directed SEBI to proceed further in accordance with law if PACL is found to be carrying on CISs. Therefore, for the contraventions as found in this Order and the contravention of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, SEBI has been advised to initiate appropriate proceedings under Sections 11(4) and 11B of the SEBI Act read with Regulation 65(e) of the CIS Regulations and Chapter VI A of the SEBI Act against PACL Limited, its promoters and directors, including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh, Mr.Subrata Bhattacharya, Mr. Nirmal Singh Bhangoo, Mr. Tyger Joginder, Mr. Gurnam Singh (R/o Wazidpur), Mr. Anand Gurwant Singh and Mr. Uppal Devinder Kumar.
 
The above action would be without prejudice to the right of SEBI to initiate any action under law including prosecution proceedings under Section 24 of the Securities and Exchange Board of India Act, 1992, against PACL Limited, its promoters and directors, including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh, Mr.Subrata Bhattacharya, Mr. Nirmal Singh Bhangoo, Mr. Tyger Joginder Mr. Gurnam Singh (R/o Wazidpur), Mr.Anand Gurwant Singh and Mr. Uppal Devinder Kumar and those other persons who are in default, for the above violations.

Mumbai
August 26, 2014

For full copy of order against ANAND GURWANT SINGH, click here.

For full copy of order against GURMEET SINGH, click here.

For full copy of order against GURNAM SINGH, click here.

For full copy of order against NIRMAL SINGH BHANGOO, click here.

For full copy of order against PACL LTD., click here.

For full copy of order against SUBRATA BHATTACHARYA, click here.

For full copy of order against SUKHDEV SINGH, click here.

For full copy of order against TARLOCHAN SINGH, click here.

For full copy of order against TYGER JOGINDER, click here.

For full copy of order against UPPAL DEVINDER KUMAR, click here.