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PACL case: Sebi extends deadline for investors to check status of application, rectify errors

New Delhi: Markets regulator Sebi on Friday extended the deadline to October 31 for investors of PACL Ltd, having claims of up to Rs 5,000, to check the status of their application and rectify errors in the form.

Earlier, the deadline was July 31.

Now, the last date for checking the status of applications and rectification of errors has been extended to October 31, 2020, the Securities and Exchange Board of India (Sebi) said in a statement.

The portal for investors to view status of their claim application has been operational from January 24.

PACL, which had raised money from public in the name of agriculture and real estate businesses, was found by Sebi to have collected more than Rs 60,000 crore through illegal collective investment schemes (CIS) over a period of 18 years.

A panel, headed by retired Justice R M Lodha, has been set up to manage refunds for investors who invested money in PACL.

The panel has successfully effected refunds to the tune of Rs 268.47 crore to 9,71,565 investors with claims up to Rs 8,000, a separate statement noted.

The committee had, after making payment to over 8.35 lakh eligible investors having claim amount up to Rs 7,000, initiated the process of payout to investors with claim amount between Rs 7,000 and Rs 8,000. It has effected payment to 1,36,231 such investors.

In December 2015, Sebi had ordered attachment of all assets of PACL and its nine promoters and directors for their failure to refund investors’ money.

In an order on August 22, 2014, Sebi had asked PACL, its promoters and directors to refund the money.

The defaulters were directed to wind up the schemes and refund money to investors within three months from the date of the order.

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