SRINAGAR: Gurnam Singh, director of Pearls Agro-Tech Corporation Limited (PACL), has been arrested by the Economic Offences Wing (EOW) of Uttar Pradesh Police in connection with one of India’s largest-ever financial frauds. According to reports from The Times of India, Singh is accused of masterminding a massive Ponzi scheme that duped nearly five crore investors across ten states, siphoning off an estimated Rs 49,000 crore.
Singh, 69, was apprehended from his farmhouse in Punjab’s Ropar district after years of evading law enforcement, as per a Hindustan Times report. He had previously been arrested by the Central Bureau of Investigation (CBI) in 2016 but was released on bail and had since been living in seclusion. His recent arrest comes after a case was registered in Jalaun, Uttar Pradesh, where local complaints prompted a broader investigation by the EOW.
India Times reported that investigators allege that PACL, which began as Guruvant Agro-Tech Ltd in Jaipur in 1996 before being renamed, operated without the mandatory registration as a Non-Banking Financial Company (NBFC). The company aggressively promoted investment schemes, promising investors land plots and high returns in exchange for recurring and fixed deposits. However, most investors received only bond receipts and were neither allotted land nor given the promised returns. Authorities describe the operation as a classic Ponzi scheme, in which initial investors were paid using funds from new recruits.
The scam primarily targeted rural and small-town populations, including farmers, retired employees, and small business owners, who were lured by the prospect of secure investments and attractive returns. PACL’s reach was extensive, spanning ten states including Uttar Pradesh, Assam, Punjab, Rajasthan, Delhi, Madhya Pradesh, Andhra Pradesh, Kerala, Bihar, and Chhattisgarh. In Uttar Pradesh alone, the company is said to have collected over Rs 19,000 crore. A vast network of agents, incentivised by commissions, helped the company recruit more investors and expand its operations.
The EOW, along with the CBI and Enforcement Directorate (ED), continues to investigate the case. Four other key accused are already in jail, while several others remain absconding. The Securities and Exchange Board of India (SEBI) had previously attached PACL’s assets and declared the scheme illegal in 2016, but most victims are still awaiting compensation.
EOW Director General Neera Rawat described the case as “a classic Ponzi scheme,” emphasising the scale of deception and the ongoing efforts to recover assets and deliver justice to the victims. The arrest of Gurnam Singh marks a significant development in the long-running investigation, but authorities say much work remains to be done to ensure accountability and restitution for the millions affected.
