Indian Express: SEBI and SAT have asked PACL to return an amount of Rs 49100 crore to the investors. Apart from the big amount, the time window they have been allotted is too narrow. PACL is to repay this amount in just 90 days. This directive has ripple effects on those 5 crore investors that are associated with PACL.
PACL is a real estate company that has over 3 lac acres of land bank. This makes it the company with biggest land bank in the entire Asian region. The company has more than 50 projects to its credit, sprawling across Delhi, Mumbai, Mohali, Pune, Noida, Zirakpur, Ludhiana, Bhathinda and many such areas. PACL has been in business for over 30 years. And now, SEBI just wants it to wind up in mere 90 days.
If SEBI thinks PACL isn’t a real estate company and falls under its jurisdictions, the company should have been given time to register, although the verdict issued by Rajasthan High Court in 2004 says otherwise. According to this verdict, PACL Ltd. is a real estate company.
Interestingly, PACL, it is learnt, has no bank loan against its name. It hasn’t floated any shares and has been sustaining itself. The payments made to the investors have been timely and a large group of investors have come together to express their solidarity, a move that is not common practice. The company has even openly invited investors to monitor the workings and proceedings. Families have been benefitting from the profits received from investments in PACL. If granted more time, the company very well holds the potential to earn huge profits for the investors. Agencies should consider the benefit of investors as well.