Financial Express: A large chunk of what is being spread in media about real estate company PACL Ltd. is negative, based on speculations and lacking substance. The biggest fallacy that we humans breed is that we have a tendency to follow the herd. All we need are a few words to be conjured in our ears and we lose track of reality. We don’t care enough to delve and find the truth but take the easier way out; following the mob. This approach of convenience however does not alter the facts and statistics that speak a different story all together for PACL. The company has been asked by SEBI to return around Rs. 49100 cr to the investors. This news in itself has been spreading like a folk lore, being altered at every level it passes through.
The rumor has it that PACl does not have enough money to follow SEBI’s directives and that the investors’ money is jeopardized. But at the end of the day, this is just a rumor; an unwarranted, unaccounted word of mouth that has been doing the rounds. The fact is that the assets of PACL are way more than the liabilities. It is a noteworthy fact that PACL has the largest land bank in India. It is actually absurd to believe that such a company is running short of funds. Then where does the problem lie? If the company has enough money to pay back to the investors, then what is causing the delay?
Official Spokesperson for PACL says, “There is a one word answer to all these questions – standoff. Contradictory directives issued by SEBI and CBI have brought the company to a road block. First of all, as per the verdict passed by Rajasthan High Court, PACL Ltd. is a real estate company. This translates into a solid fact that PACL not fall under does Collective Investment Scheme. This is a major bone of contention. To worsen the situation, SEBI has asked PACL to return Rs 49100 crore to investors in a very short time of 3 months. This is in straight contradiction with CBI’s orders which clearly mention that PACL cannot execute any business operations without getting permission from CBI. This has been hampering business for us as all the original land documents are with CBI and not being able to furnish these documents to the investors has been scaring them away. Even the foreign investors have shown apprehension.”
This is a condition of roadblock. It is highly implausible for a company to repay such amount in a time frame of three months without being able to work. The difference of opinion between the two agencies has brought harrows to PACL and its investors. PACL has no intentions of duping the investors but it is trapped in the legal tussle involving conflicting directives from CBI and SEBI.