ED arrests son-in-law of former Pearls Group chief Bhangoo in Rs 48,000 crore ponzi scam-OxBig News Network

The Enforcement Directorate has arrested Harsatinder Pal Singh Hayer, the son-in-law of the former Pearls Group chairman and managing director Nirmal Singh Bhangoo, on money-laundering charges.

He was arrested on March 21 and remanded in ED custody by a Delhi PMLA court.

The case is based on a FIR registered by the CBI against PACL India Limited, PGF Limited, Nirmal Singh Bhangoo (who died in August 2024), and others. “They were involved in operating fraudulent investment schemes to deceive investors. Through these schemes, PACL and its directors defrauded investors of approximately Rs 48,000 crore,” said the agency.

After Bhangoo was arrested by the Central Bureau of Investigation (CBI) in 2016, Hayer, his wife Barinder Kaur and mother-in-law Prem Kaur looked after the business. They reportedly formed new firms, the directors of which were their relatives, servants and drivers.

Punjab Agro Company Limited (PACL), a subsidiary of the Pearls Group, and Bhangoo, had allegedly cheated 5.5 crore investors through a network of 2.3 million agents by promising them agricultural plots and a high return on investments.

In 2016, the Supreme Court restrained PACL and its directors, promoters and associate companies from selling or transferring properties in or outside India. In December 2015, SEBI had ordered attachment of all PACL assets and its nine promoters and directors for their failure to refund money to investors. A panel headed by Justice RM Lodha (retired) had initiated the process of refunds to investors.

“Investigation revealed that Hayer was the director of several associate companies of PACL, including two Australian entities – Pearls Australasia Pty Ltd and Australasia Mirage I-Pty Ltd. “PACL and associates diverted Rs 657.18 crore of the proceeds of crime (POC) to these Australian entities controlled by Harsatinder Pal Singh Hayer,” the ED said in a statement issued on Saturday.

“These funds were then invested by the Australian companies in various real estate properties in Australia. Further, Harsatinder Pal Singh Hayer was also dissipating the properties of PACL and its related entities in violation of Supreme Court order dated July 25, 2016,” it added.

In this case, ED has already attached two immovable properties in Australia valued at Rs 462 crore and various movable and immovable properties worth Rs 244 crore in India.

Details of these assets have been shared with the Justice Lodha Committee, appointed by the Supreme Court, for overseeing the process of property disposal and restituting the money to investors.

The ED has also filed two prosecution complaints against the accused persons and entities.