In a significant development related to one of India’s largest financial frauds, the Central Bureau of Investigation (CBI) has arrested Harchand Singh Gill, a director of the Pearls Group, who was allegedly involved in the massive Rs60,000 crore Ponzi scam. Gill was deported from Fiji and arrested by the CBI upon his arrival in India.
Gill’s arrest comes as part of the CBI’s Operation Trishul, a major initiative aimed at bringing fugitives living abroad back to India. The operation, which has already led to the return of around 30 fugitives, seeks to bring criminals and their illicit proceeds back under the jurisdiction of Indian law enforcement with the help of Interpol.
The investigation into the Pearls Group scam began in February 2014 after the CBI registered a case against Nirmal Singh Bhangoo, the founder of the group, and other directors of the company. They were accused of running a Ponzi scheme, defrauding investors with promises of land investments and high returns. The total amount allegedly siphoned off from the investors is estimated to be a staggering Rs60,000 crore.
According to the CBI, Gill and his associates conspired to operate a collective investment scheme illegally without the necessary statutory approval. The group promised lucrative returns to investors but ultimately misused the funds for personal gain. In a search conducted by the agency in February 2014, the CBI recovered significant evidence, including documents revealing the diversion of funds to foreign accounts, especially to Australian companies.
The CBI’s investigation revealed that Rs132.99 million AUD (approximately Rs700 crore) was illegally transferred to companies in Australia under the guise of investments, further complicating the case. The agency also uncovered detailed records related to deposits made by the public, which were misused or diverted for unauthorized purposes.
The Pearls Group scam is one of the largest Ponzi schemes in India, affecting thousands of gullible investors across the country. The arrest of Harchand Singh Gill marks a significant step in holding those responsible for the fraud accountable. The CBI has vowed to continue its investigation and bring other absconding accused to justice.
As the investigation progresses, the authorities are intensifying their crackdown on fraudulent schemes, with special focus on Ponzi and investment frauds that have left investors financially devastated.