PACL India Limited (PACL) has been raising money from the public under different schemes to allot plots in different parts of the country or give an option to take over their provisional provisional value of land instead of allotted plot in the framework of the program at maturity.
The company was engaged in the real estate business and the sale of agricultural land in the country through its agents and local office. The company got the dual benefit by creating easy equity for buying land and later taking advantage of land price appreciation, ED said in a statement. PACL had raised sums amounting to several million euros from investors across India, he added.
According to the ED investigation, the directors of PACL misappropriated amounts received from investors and used them for personal gain by investing in various entities. The investigation conducted by ED revealed that PACL transferred Rs 101 crores of investor money into Dhanashree Developers Private Limited, of which Rs 26 crores was transferred to DDPL Global Infrastructure Private Limited. Additionally, PACL transferred Rs 2,285.79 crores to a single Prateek Kumar who invested Rs 94.61 crores in DDPL and Unicorn. PACL also transferred Rs 110.95 crores into Systematix Venture Capital Trust through its 25 front companies, which were invested in DDPL and Unicorn in the form of OFCD and equity.
With funds received from PACL through various channels, DDPL and Unicorn purchased plots of land in Vasai, Tiwri Village, Palgarh District, Maharashtra. DDPL and Unicorn have entered into various agreements with different entities for the sale of FSIs and the construction of residential and commercial projects; both of which have generated huge profits. At this stage of the investigation, land with an area of 3,39,984.2 square meters in Vasai and bank balances amounting to Rs 7,51,78,480/- were seized.
ED’s investigation also revealed that the shareholding of DDPL and Unicorn changed frequently in order to legitimize funds received from PACL and to ensure that assets were not taken over and given away to investors. The scheme has been cleverly designed to hide the true beneficiary of the land and shares to avoid investigation by government agencies. The shareholders of M/s DDPL and M/s Unicorn viz. Hemant Patil and Dharmesh P Shah have rights to these assets without ever investing substantial funds in the companies.