NEW DELHI: The Directorate of Enforcement (ED), Delhi Zonal Office, arrested Harsatinder Pal Singh Hayer, the son-in-law of the late Nirmal Singh Bhangoo, in connection with the multi-crore Pearl Agro Corporation Limited (PACL) fraud case.

Hayer was detained under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. A Special Court (PMLA cases) has sent him to ED custody for further investigation.

The case dates back to an FIR filed by the CBI, BSFC, New Delhi, under Sections 120-B and 420 of the Indian Penal Code (IPC), 1860, against PACL India Limited, PGF Limited, and its directors, including Bhangoo. The accused were involved in operating fraudulent investment schemes, deceiving investors of around Rs 48, 000 crore. These schemes promised high returns to investors, but in reality, the money was siphoned off by the company’s directors.

The ED’s investigation revealed that Hayer served as a director in several associate companies of PACL, including two Australian entities – Pearls Australasia Pty Ltd and Australasia Mirage I-Pty Ltd. The ED uncovered that these companies diverted Rs 657.18 crore of the proceeds of crime to Australia, where the funds were invested in various real estate properties.

Further scrutiny revealed that Hayer had been dissipating the PACL’s assets in violation of a Supreme Court order issued on July 25, 2016, which instructed the disposal of properties to restitute the investors. In response, the ED attached two immovable properties in Australia, valued at Rs 462 crore, along with movable and immovable assets worth Rs 244 crore in India.

The ED has also shared these details with the Justice Lodha Committee, which has been appointed by the Supreme Court to oversee the process of property disposal and ensure that the money is returned to the defrauded investors. Moreover, two prosecution complaints have been filed against PACL, Bhangoo, and others involved in the fraud.