In a significant move against financial fraud, the Enforcement Directorate (ED) has attached properties worth over Rs 3,400 crore linked to Pearl Agro Corporation Ltd (PACL), also known as Pearl Group, and its promoter, Nirmal Singh Bhangoo. The properties, located in Ludhiana, were seized as part of an ongoing money laundering investigation.

The ED's investigation revealed that PACL, through a multi-level marketing scheme, allegedly collected over Rs 48,000 crore from investors with promises of land allotments. However, these funds were allegedly diverted into shell companies registered in Kolkata, then withdrawn in cash and sent to Dubai through hawala channels. The money was subsequently invested in several countries for purchasing hotels and resorts, with a significant portion invested in property acquisitions in Australia.

The agency's probe is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) against PACL, Nirmal Singh Bhangoo, and others, concerning their alleged involvement in fraudulent investment schemes. The Securities and Exchange Board of India (SEBI) had previously banned the Pearl group for "illegally collecting Rs 49,100 crore from 59 million investors over 18 years".

According to the ED, part of the funds mobilized from investors were utilized for acquiring 169 properties in the name of PACL, which are currently valued at Rs 3,436.56 crore. This latest action brings the total value of attachments in the case to over Rs 5,600 crore, including properties located in Australia.

Earlier in March, the ED arrested Bhangoo's son-in-law, Harsatinder Pal Singh, who was allegedly involved in laundering the proceeds of crime and purchasing properties worth over Rs 460 crore in Australia, which were later attached by the ED. Hayer was a director in several associate companies of PACL Ltd, including two Australian entities. PACL and its associates diverted Rs 657 crore of the proceeds of crime to these Australian entities controlled by Harsatinder Pal Singh Hayer, which were then invested in various real estate assets in Australia.

The ED has filed three chargesheets in the case so far. Last year, the ED initiated restitution proceedings to return lost money to nearly six crore investors. The agency shared details of Rs 700 crore worth of attached assets of Pearl Agro group with the Justice Lodha committee, which was appointed by the Supreme Court to oversee the disposal of confiscated assets and the restitution of funds to the victims.

In 2018, the ED successfully linked illegal profits to PACL and Nirmal Singh Bhangoo, attaching two properties in Australia valued at Rs 4.62 billion. In 2022, assets worth Rs 2.44 billion linked to the group and Bhangoo's associates were also seized in India.

The ED's investigation is ongoing, with the agency conducting searches across 44 locations in Delhi, Haryana, Punjab, Maharashtra, Telangana, Karnataka, West Bengal, Rajasthan, and Uttarakhand last year, tracing the proceeds of the crime.