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In a major breakthrough in one of India’s biggest financial scams, Gurnam Singh, a director of Pearls Agro-Tech Corporation Limited (PACL), has been arrested by the Economic Offences Wing (EOW). The arrest is linked to a staggering ₹49,000 crore Ponzi scheme that allegedly duped over 5 crore investors across the country.

How the Scam Worked

According to investigators, Pearls Agro-Tech lured millions of small investors by promising lucrative returns on investments in agricultural land projects. However, the company allegedly did not own sufficient land to justify such large-scale investments. Instead, funds collected from new investors were used to pay returns to earlier investors — a classic hallmark of a Ponzi scheme.

EOW officials stated that the scam, which spanned more than a decade, involved complex layers of companies, shell firms, and false documents to mislead regulatory authorities and investors alike. The funds siphoned off are estimated to be around ₹49,000 crore, making it one of the largest financial frauds in Indian history.

SEBI’s Role and Action

The Securities and Exchange Board of India (SEBI) had earlier ordered PACL to refund the investors’ money, but authorities have struggled to recover the massive sums involved. SEBI had declared that PACL raised money illegally under the guise of land development projects.

Widespread Impact

The scam has devastated millions of small investors, many of whom poured in their life savings hoping for secure returns. Authorities are now tracing assets and bank accounts linked to the accused in a bid to recover funds for the victims.

The arrest of Gurnam Singh is seen as a significant step forward in the long-running investigation, although experts warn that recovering the full amount may prove to be a herculean task given the scale and complexity of the fraud.

Further investigations are underway, and more arrests are expected in connection with the ₹49,000 crore Pearls Ponzi scam.