In a significant turn of events, Nirmal Singh Bhangu, the owner of the infamous Pearls Group, has passed away. He was incarcerated in Tihar Jail when his health deteriorated, leading to his admission to Deen Dayal Hospital, where he unfortunately succumbed. Bhangu became a notorious figure several years ago due to his involvement in a Ponzi scheme that defrauded investors to the tune of approximately ₹50,000 crore. He was arrested by the Central Bureau of Investigation (CBI) in January 2016 and had been serving time in Tihar Jail since then.
Early Career and Rise to Prominence
Nirmal Singh Bhangu hailed from Barnawa district in Punjab. His career took an unconventional turn, starting with selling milk. In the 1970s, he moved to Kolkata for job opportunities and later worked with a company named Golden Forest Limited in Haryana. However, as this company faced closure, Bhangu recognized a lucrative opportunity in the world of financial fraud.
He honed his skills in scamming, particularly through chit funds, before eventually establishing his own business. Bhangu founded Pearls Golden Forest, which attracted investors by promising substantial returns on money invested in teak plantation projects. By 1996, he had amassed considerable profits, but investigations by the Income Tax Department forced him to shut down his operations.
Unraveling the ₹50,000 Crore Scam
In 1996, Bhangu founded PACL, a real estate company, luring millions into a massive investment scheme. He promised lucrative returns, and his confidence paying off led to approximately 5 crore unsuspecting investors pouring ₹50,000 crore into the venture. The company operated through a network of around 30 lakh agents, significantly scaling its operations.
However, the suspicious nature of his operations raised red flags with the Securities and Exchange Board of India (SEBI). Despite being classified as a real estate company, the functioning of PACL as a chit fund caught the attention of regulatory authorities. The case against PACL stretched over eight years in court but saw an exponential increase in business during this period. In 2014, the Supreme Court ruled against PACL, leading to immeasurable losses for investors.
Bhangu’s Legacy: A Cautionary Tale
The rise and fall of Nirmal Singh Bhangu serve as a chilling reminder of the complexities and perils associated with investment schemes. While he initially started with a humble background, the lure of quick profits led him down a dark path that ultimately ended in tragedy for both him and the countless individuals who entrusted him with their hard-earned money.
