Pearls Group's Nirmal Singh Bhangoo, accused in Rs 45,000 cr ponzi scam, dies

New Delhi, Aug 26 (IANS) Pearls Group's founder Nirmal Singh Bhangoo, arrested by the Central Bureau of Investigation (CBI) in a massive Rs 45,000 crore ponzi scam impacting more than five crore investors, has passed away at a hospital here, according to multiple reports.

As per reports, Bhangoo was admitted to Deen Dayal Upadhyay Hospital in west Delhi after his health deteriorated in the Tihar jail. An official confirmation was awaited from either the jail authorities or from the CBI.

Bhangoo and three others were arrested by the CBI in January 2016 for the alleged swindling of Rs 45,000 crore from over five crore investors through enticing land deals.

Last year, the Punjab government started the process of confiscating properties owned by Pearls Group in connection with the multi-crore chit fund case, to compensate the people by selling them.

The CBI, which has been investigating the scam since February 19, 2014, has alleged that thousands of crores were siphoned off by the two flagship companies of Pearls Group -- PGF Ltd and PACL Ltd -- by duping close to 5.50 crore investors from across the country by floating ponzi schemes.

The properties of the Pearls Group were identified in various districts in Punjab, and a legal process was initiated to acquire these properties.

The central agency had registered the case on directions from the Supreme Court. The CBI also arrested Harchand Singh Gill, a director of a Pearls Group, who was deported from Fiji under ‘Operation Trishul’. Gill was arrested on landing in New Delhi.

In November last year, a Delhi court also sent Sub-Inspector Rajesh Yadav to 14 days of judicial custody in connection with a bribery case linked to the ponzi scam. Yadav was arrested for allegedly accepting a bribe of Rs 4.5 lakh from an employee of Bhangoo to refrain from implicating his daughter and son-in-law in the ponzi scam case.