The Pearls Group was an Indian group of companies founded by Nirmal Singh Bhangoo involved in ponzi scheme.
Bhangoo previously worked for Peerless Group before he founded his own company. [1]
One company called Guruvant Agro-Tech Ltd was founded in Jaipur in 1996, it was rebranded in 2011. The company provided plots of land against recurring payments and fixed deposits, and provided bond receipts even though it was not registered as a Non-Banking Financial Company. [2] Punjab Agro Company Limited (PACL) mobilised funds since 1997. Securities and Exchange Board of India (SEBI) on 30 November 1999 and 10 December 1999 asked PACL to follow the rules of the collective investment scheme (CIS). [3] PACL held it was selling land to customers and not investment schemes, and as such the Sebi's regulations were not relevant in their case. [4]
The group's Ponzi scheme used funds from new investors in order to repay earlier investors and giving commission to agents for recruiting new investors. [2]
Australian cricketer Bret Lee was hired by the company as the brand ambassador while Indian cricketers such as Harbhajan Singh and Yuvraj Singh received gifts from the company. [5]
The company collapsed in 2014 after Indian agency Central Bureau of Investigation raided the company's operations and uncovered the scam of 45,000 crores. [6] [7]
Bhangoo was jailed in 2016. He died on 26 August, 2024. [1] After his death, Bhangoo's daughter announced the money will be returned to investors. [8]
As of 2024, only 21 lakh out of 5.5 crore investors were refunded with their money. [9]