The family of Nirmal Singh Bhangoo, the principal figure behind the staggering Rs 45,000 crore Pearl Group scam who passed away on Sunday, issued a public notice vowing to return the money to investors. The announcement came in the wake of Bhangoo’s recent death, which has intensified the spotlight on the extensive financial scandal. Bhangoo, whose funeral took place in Mohali on Wednesday, passed away on the night of August 25 at Delhi’s DDU Hospital after his health deteriorated.
The public notice was issued by Bhangoo’s daughter Barinder Kaur Bhangoo, who is also a prominent member of the Pearl Group. This communication aimed at addressing investors’ concerns and assure them of the family’s commitment to rectifying the situation. The notice highlighted that Nirmal Singh Bhangoo’s life was dedicated to repaying the investors, and the family remains steadfast in fulfilling this promise even after his death.
Bhangoo had founded the Pearl Group, which included Pearl Golden Forest (PGF) and Pearl Agro Tech Corporation Limited (PACL), and began its operations in 1980, initially mirroring the structure of the fraudulent Golden Forest India Limited. Bhangoo’s schemes involved enticing investors with promises of high returns on investments in tree plantations and other ventures. By the 1990s, Bhangoo had amassed billions of rupees from over five crore investors, creating a vast financial empire that spanned both domestic and international markets.
However, Bhangoo’s empire was exposed as a massive Ponzi scheme. The Central Bureau of Investigation (CBI) arrested him in January 2016, following extensive investigations into his fraudulent activities. Bhangoo was detained at Tihar Jail in Delhi, where he remained until his health problems necessitated a transfer to DDU Hospital. Despite his incarceration, Bhangoo continued to be a focal point of numerous investigations, including those by the Enforcement Directorate (ED), which further revealed the scale of his financial misconduct.
The public notice issued by Barinder Kaur asserted that the family is committed to upholding her father’s legacy by ensuring that investors receive their due returns. It emphasized that the Supreme Court of India is overseeing the repayment process through two dedicated committees — the Lodha Committee and a Special Committee. These committees are tasked with managing the distribution of funds to investors of PACL Limited and PGF Limited, ensuring that the repayment process is handled with transparency and accountability.
Punjab Government, under Chief Minister Bhagwant Mann, has also taken steps to address the crisis. In May 2023, the Chief Minister initiated the seizure of Pearl Group properties to facilitate the return of investors' money. The legal process for seizing these assets is underway, aiming to recover funds for defrauded investors. Additionally, in September 2023, the Punjab Vigilance Bureau arrested Bhangoo’s wife Prem Kaur for her alleged involvement in the misappropriation of the Group's assets. She was accused of violating Supreme Court orders and transferring properties to a close relative to evade legal scrutiny.
The Bhangoo family's public notice reassured investors of their unwavering commitment to resolving the financial issues caused by the fraudulent schemes. Barinder Kaur has pledged to cooperate fully with judicial and semi-judicial authorities to ensure that her father’s promise of investor repayment is honoured. The notice also reflected the family’s determination to restore investor trust and rectify the financial wrongs, underscoring their dedication to addressing the fallout from the scam.
