ED nabs Pearls Group ex-Chief’s son-in-law in ₹48,000 crore fraud case

The Enforcement Directorate (ED) has arrested Harsatinder Pal Singh Hayer, son-in-law of the late Nirmal Singh Bhangoo, in connection with the ₹48,000-crore PACL Ponzi scheme. Hayer was taken into custody under the Prevention of Money Laundering Act (PMLA), 2002, and was remanded to ED custody by a special PMLA court. The investigation stems from a Central Bureau of Investigation (CBI) FIR against PACL India Limited, PGF Limited, and their directors for running fraudulent investment schemes.

According to ED, PACL and its associates defrauded around 55 million investors by illegally collecting funds through a network of 2.3 million agents, promising high returns on investments in agricultural land. The Securities and Exchange Board of India (SEBI) banned PACL’s operations after finding that the company was running an unauthorized collective investment scheme.

The Supreme Court later directed the sale of PACL’s assets to refund investors. ED’s investigation revealed that Hayer was a director in several PACL-linked firms, including two Australian entities—Pearls Australasia Pty Ltd and Australasia Mirage I-Pty Ltd. The agency alleged that ₹657.18 crore from the proceeds of crime was diverted to these entities and used for real estate investments in Australia.

The agency also stated, “Harsatinder Pal Singh Hayer was dissipating the properties of PACL and its related entities in violation of Supreme Court order dated July 25, 2016.” As part of its crackdown, ED has attached two immovable properties in Australia valued at ₹462 crore and additional movable and immovable assets worth ₹244 crore in India.

These asset details have been submitted to the Justice Lodha Committee, which was appointed by the Supreme Court to oversee the disposal of PACL’s properties and ensure repayment to investors. Earlier, ED had filed two prosecution complaints in the case against PACL, Bhangoo, and other individuals linked to the fraud. The investigation into money laundering activities, overseas fund diversion, and asset concealment is ongoing.