SEBI Garners 14 Cr From Sale of PACL’s 31 Luxury Cars So Far

The SC directed the sale of the company’s assets to recover Rs 49000 crore from the group for duping its investors.

As many as 46 luxury vehicles owned by PACL were put up for auction by Securities Exchange Board of India. (Photo Courtesy: Justice Lodha Committee)

SEBI officials told BloombergQuint that they have garnered about Rs 14 crore from the first round of auctions and 31 out of 46 luxury cars have been sold online.

The officials wished for anonymity as the auction process will continue for the remaining 15 cars and the next date for auction has yet been decided.

As many as 46 luxury vehicles owned by Pearl Agrotech Corporation Ltd. (PACL) were put up for auction by Securities Exchange Board of India (SEBI) on Tuesday.

The market regulator held an e-auction for the sale of these luxury cars which include Porsche Cayenne, Captiva, Mercedes-Benz, Lexus LX 570, Land Cruiser, Fortuner, Jaguar XJ 3.0L, among others.

This the first auction held by SEBI after the Supreme Court’s February order. In a bid to recover over Rs 49,000 crore from the group for duping investors through its collective investment scheme, the apex court in February this year directed the sale of the company’s assets and appointed a committee to oversee the same.

(Photo Courtesy: Justice Lodha Committee)

(Photo Courtesy: Justice Lodha Committee)

The SEBI shall constitute a committee for disposing of the land purchased by the company so that the sale proceeds can be paid to the investors, who have invested their funds in the company for the purchase of land. Honourable Mr Justice RM Lodha, the former Chief Justice of India, would be the chairman of the said committee.

Supreme Court order February 2, 2016

(Photo Courtesy: Justice Lodha Committee)

The Supreme Court-appointed panel, led by former Chief Justice of India, Justice RM Lodha, is also overseeing the refund of Rs 49,000 crore by the company to its investors.

The case relates to PACL allegedly duping over five crore investors through its collective investment scheme, which was held illegal by SEBI. In August 2014, the market regulator had asked PACL to wind up its schemes and refund investors. This order was challenged by PACL in the Securities Appellate Tribunal, which upheld SEBI’s order in 2015. PACL and its promoters then challenged the tribunal’s order in the apex court.

(Photo Courtesy: Justice Lodha Committee)

SEBI officials refused to divulge any details with respect to progress of the auction held on Tuesday as data regarding price and number of bids was not finalised.

All pictures have been clicked by Justice RM Lodha panel and we have accessed the pictures from the MSTC website, which is facilitating the auction process.

(Source: BloombergQuint)