Friday, 28 October 2016

Securities Appellate Tribunal warns Pancard Clubs against delaying tactics in repaying investors -The Total Investment & Insurance Solutions

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28 October 2016

The Securities Appellate Tribunal (SAT), while hearing unpaid Investors of Pancard Clubs Limited (PCL) who have filed an intervention making  serious allegations of fraud on Pancard Clubs Limited (PCL), which has failed to repay investors, expressed  annoyance at delaying tactics adopted by PCL to prolong the hearings. Justice J P Devadhar, Presiding Officer of SAT warned PCL that if PCL does not file their replies to the Miscellaneous Applications filed by SEBI and the unpaid Investors, SAT will vacate the Interim Stay granted in March 2016 to PCL. The Total Investment & Insurance Solutions

SAT was hearing Appeals by PCL and its Directors challenging SEBI’s Order of 29 February 2016, holding PCL to be a Collective Investment Scheme and directing PCL to return Rs7,035 crore to about 2.5 million investors all India. The Total Investment & Insurance Solutions

Advocates Rabindra Hazari and Niket Mehta, who appeared for several unpaid Investors, argued that PCL, has a paid up capital of only Rs50 lakh but has debts of more than Rs7,000 crore. Hence, to ensure recovery of Investors’ monies it is vital that SAT and SEBI take action against more than 54 Companies which are admittedly part of the Panoramic Group of Companies which have siphoned funds from PCL and thereby own 31 running hotels all over India and 13 overseas hotels plus another 9 hotels which are under development. The Total Investment & Insurance Solutions

Rabindra Hazari and Niket Mehta therefore prayed that all the entities and Directors of the Panoramic Group must be separately identified along with the assets held by each person, Court Receiver must be appointed over all these properties and in the interim period they must be specifically restrained from disposing of any of their assets without prior written consent of SAT or SEBI.

Moreover, as the transfers of assets and funds from PCL to its huge number of related enterprises is very murky, forensic auditors must be appointed over all the Panoramic Group entities, especially Panoramic Universal Limited, the sole listed Company which is managing more than 50 hotels, and all these documents and reports must be posted on public websites or otherwise published in the public domain.


Justice Mr. J.P. Devadhar directed that the latest Miscellaneous Application filed by the Interveners be heard together with PCL’s Appeal on 15 November 2016.The Total Investment & Insurance Solutions

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