It seems our IBOFB got mouthful. That is why he is not responding to the comments. Let us move on to some other racketeers who have been cheating people all over India. PACL is just another racketeer who has high connections so that no one can touch him. Earlier, Sahara India cheated people to the tune of several billions of rupees and is now facing criminal cases.
PACL, earlier known as Pearls Agro Corporation Limited, has been cheating lakhs of people offering them land for their deposits.
Let us first examine how it cheats people. It invites people to purchase its land posing as real estate business venture. People are told to pay the amount either instalments ranging from six to ten years or in single downpayment basis. They will be given a certificate to that effect. On that certificate it is clearly written the date of realisation of the amount. For instance, if somebody pays Rs. 10,000 and the period is ten years, on the realisation date he would be paid Rs. 37, 067.
It looks good for any person who wants to save his money for ten years. But the catch point is the PACL has no permission from Reserve Bank of India to mobilise deposits from public. To circumvent the problem, the PACL claims that the money is for purchasing real estate. The PACL promises to allot 300 square yards of land anywhere in India 'subject to availability'. Any real estate firm acquires land first, divides into small units, obtains necessary permission from the local authorities, provides necessary infrastructure and then offers to sell land to public. But here, the PACL first collects money and later promises to allot land in future.
In its agreement form, the PACL states that the members would be allotted land 270 days after full payment or 90 days after completion of the last instalment. However, it adds that the money would be refunded after the set period. If land is allotted after 270 days, why would the PACL keep money for ten years.
The real idea is to mobilise deposits to line its pockets and it is evident that it has no sufficient land on its hand to allot to all the depositors. It is only hoodwinking the authorities.
Then comes the money circulation angle to the whole issue. It lures its member-depositors to bring in more members so that they can claim commission. The commission is very attractive and they are promised promotion as field officers, supervisors, inspectors, senior inspectors so on and so forth. With the lure of commissions, the members try to bring in as many people as possible from their circle of friends and relatives.
They do not realise that there is no security to their deposits and they would never be allotted land. In fact, even if the PACL wants to allot land to all its member-depositors, there is not sufficient land in the country. That is the number of member-depositors who run into several hundred thousand.
The PACL has very big clout in the political circles and a number of people's representatives are on it pay role. Naturally, they would jump to defend it at any cost. That is why whenever a criminal case is registered against the PACL, it would be hushed up immediately. The PACL takes necessary precautions not to annoy its member-depositors.
The fact is the PACL is flouting all the laws of the land and there is no check to its activities.