| NEW DELHI
NEW DELHI Aug 25 Indian property developer PACL
said it would appeal a regulator's order to return at least $8.1
billion to investors in a land-for-funds scheme, as depositors
went to the company's New Delhi office to demand their money
The Securities and Exchange Board of India (SEBI) on Friday
ordered unlisted PACL to refund the money within three months,
after ruling that the company's investment schemes had not been
registered with the capital markets regulator.
PACL on Monday assured investors that their deposits were
safe while saying its scheme - which promised depositors returns
on investments in agricultural land - did not have to be
"We assure our customers that their investments are safe and
their interests would not be jeopardized," PACL said in a
PACL is also being probed by the Central Bureau of
Investigation (CBI) for what India's top crime-fighting agency
has described as "an alleged scam" for raising money from
millions of investors under the guise of the sale and
development of agricultural land.
SEBI in its order on Friday said PACL's land holdings did
not cover the amount of money raised from investors. The company
denied that on Monday, saying it had "sufficient asset
Companies such as PACL operate in a regulatory grey area
that has developed because almost half of India's more than a
billion people do not have access to formal banking. But
regulators fear this makes investors vulnerable to unregulated
Last year, Kolkata-based Saradha Group was ordered to return
$3.7 billion after running a deposit scheme that went bust.
About a dozen investors and agents gathered at PACL's main
office in Delhi as three security officers guarded the entrance.
Vijender Kumar, a 24-year-old in the nursing sector, said he
had come from the outskirts of Delhi after reading about PACL in
a newspaper since his father had invested 60,000 rupees over
five years until 2013.
Kumar said he was forced to take a loan to treat his ailing
mother after PACL did not return his deposit last year on
maturity even after visiting his local PACL branch 10 times. He
said PACL had given a slew of reasons, including blaming
regulators for freezing the deposits.
"We feel duped," Kumar said. "This money means a lot for
No PACL official was available to answer Reuters queries in
the Delhi office.
($1 = 60.5650 Indian rupees)
(Additional reporting by Himank Sharma in MUMBAI; Writing by
Devidutta Tripathy; Editing by Rafael Nam and Michael Urquhart)