Refund Rs 49k cr to investors, SAT tells realty major PACL
Aug 18, 2015
Source : Toi

 

MUMBAI: Securities Appellate Tribunal (SAT) on Monday upheld an order by market regulator Sebi against Jaipur-based real estate major PACL Ltd and directed it to refund Rs 49,100 crore that the company had collected through what the tribunal termed as 'sham collective investment scheme (CIS)'. This was the largest CIS in the country so far — in terms of money collected as well as the number of investors involved — against which Sebi had passed an order.

Exactly a year ago, Sebi had ordered PACL to wind up its illegal CIS and refund all the money it had collected from investors within three months. Subsequently PACL had challenged Sebi's order in SAT.

According to the Sebi order, PACL was running a land purchase scheme, collecting money from investors by promising that the investments in the company's schemes were highly profitable. Sebi had found out that through its unauthorized CIS that was running for 15 years, PACL had collected Rs 49,100 crore from 5.85 crore investors. Of these many customers, PACL had issued sale deeds to only 19,284 investors.

The SAT order also noted that although PACL had collected Rs 49,100 crore, the total value of the lands that PACL held in the form of stock in trade was Rs 11,707 crore. The order pointed out that amount of land held by PACL was wholly disproportionate to the amount of money collected from investors. It also noted that there was nothing on record for the company to suggest that PACL had any other assets.

"In such a case, permitting PACL to operate CIS by seeking registration under CIS Regulations would have been travesty of justice. Accordingly, no fault can be found with the decision of Sebi in directing PACL to wind up all existing schemes and refund the monies collected from the investors with the return which are due to its investors," SAT noted.

 

 

Latest Realty News

Real-estate-industry-keeps-fingers-crossed-for-GST-Bill-to-be-passed-this-week
Aug 18, 2015
NEW DELHI: The real estate industry is keeping its fingers crossed and hoping that the Goods and Services Tax (GST) Bill would be passed in the current Monsoon Session of Parliament so that rationalisation of taxes on purchase of materials does not get pushed to 2017.
Realty-projects-in-Kolkata-reel-under-neta-extortion
Aug 18, 2015
KOLKATA: Civic officials and politicians are now asking real estate developers in Kolkata and its vicinity to pay for every activity related to construction. This amount is so significant that developers factor in the additional cost at the planning stage of a project while calculating overheads.
Asset-Firm-Launches-$250-Mn-Fund-for-Investment-in-India
Aug 17, 2015
Dubai: An Indian asset management firm has launched a $250-million realty fund for Gulf investors to develop mid-income residential properties in India.
Carlton-House-to-become-legislators'-club?-Storm-brews-on-social-media
Aug 17, 2015
Months after the proposed plan to demolish Balabrooie Guest House to build a club for legislators was scrapped following a public outcry, deputy speaker NH Shivashankara Reddy told media that Carlton House, another heritage building, would be converted into the proposed club. Carlton House is situated on Palace Road, off Vidhana Soudha.
Cash-strapped-builders-turn-to-PEs,-NBFCs-to-refinance-debt
Aug 14, 2015
BENGALURU/MUMBAI/NEW DELHI: Real estate developers are increasingly turning to private equity investors and non-banking finance companies to refinance massive debts due to sluggish home sales in the last couple of years and banks becoming cautious about lending to the industry
BDA-illegally-Parks-Funds-In-MFs,-Other-Agencies
Aug 12, 2015
BENGALURU: Can money raised by the Bangalore Development Authority from aspiring site owners be parked in high-risk investment instruments like mutual funds, though the plots remain elusive for years? Can the agency tasked with ensuring sustainable and orderly growth of Bengaluru resort to unauthorized monetary transfers to assorted government agencies like the Coffee Board, Bangalore Metro Rail Corporation and Karnataka Backward Classes Department Building Construction Society which builds stud
No-Safety-in-City's-Buildings
Aug 12, 2015
As real estate prices skyrocket and renting out a house in the city gets increasingly difficult, many tenants are opting for illegal structures that are comparatively cheaper. Monday's incident at Teynampet, where a three-storey residential building on Bhaktavachalam Street tilted, once again exposed the risk of illegal buildings in the city. Taking no chances, Corporation of Chennai has decided to demolish the structure.
Real-Estate-Bill-Clears-Govt-Of-Blame,-Worries-Some-Builders
Aug 11, 2015
Panaji: The Real Estate (Regulation and Development) Bill, 2013, which is still pending in Parliament, has the Goan real estate industry worried. While stakeholders agree that the bill, once passed, will bring clarity and confidence into the real estate market, developers are wary about the lack of onus placed on the government, which they feel, is an important stakeholder in the real estate economy.
Aravali-master-plan-stuck-in-freezer
Aug 10, 2015
GURGAON: The Haryana government's ambitious plan to conserve the Aravalis by drawing up a master plan for the region, which was initiated by the state's forest minister Captain Abhimanyu, may have been put in cold storage
Real-Estate-Bill:-Growth-of-the-sector-can’t-be-at-the-cost-of-consumers
Aug 08, 2015
The report of the Parliamentary Select committee on the Real Estate (Regulation and Development) Bill, 2013, tabled on the floor of the Rajya Sabha has not only rectified the many dilutions that were made to the original Bill, it has also built in additional safeguards to regulate all kinds of transactions between home-buyers and builder

Latest Realty News Of State

Realty Talk's