ED Raids 15 Locations Linked to PACL Scam, Including Premises of Punjab MLA and Former Rajasthan Minister

• Apr 16, 2025

The Enforcement Directorate (ED) on Tuesday conducted raids at 15 locations connected to Pearl Agro Corporation Limited (PACL) and its associated entities, as part of an investigation into a massive ₹48,000-crore money laundering case. The late Nirmal Singh Bhangoo, former chairman of PACL, is at the center of the alleged scam.

Among the properties searched were the office and residence of Aam Aadmi Party (AAP) MLA Kulwant Singh in Mohali. Singh, a real estate developer-turned-legislator, is regarded as one of Punjab’s wealthiest lawmakers. He was not present during the raid and has not yet issued a public statement.

In a parallel move, the ED also raided the Jaipur residence of senior Congress leader and former Rajasthan minister Pratap Singh Khachariyawas.

The crackdown follows revelations that PACL directors allegedly defrauded investors by channeling their money into shell companies located across the country. An FIR had previously been registered against Bhangoo’s associates for the illegal disposal of properties linked to PACL and its network of companies.

Last month, the ED arrested Harsatinder Pal Singh Hayer, the son-in-law of Nirmal Singh Bhangoo, on charges of money laundering. The case stems from a CBI FIR against PACL India Limited, PGF Limited, Bhangoo (who passed away in August 2024), and several others.

According to the ED, PACL and its directors ran fraudulent investment schemes that deceived thousands of investors and led to the misappropriation of around ₹48,000 crore. Hayer, who held directorships in several PACL-linked companies, is accused of being involved in the diversion of ₹657.18 crore to Australian firms — Pearls Australasia Pty Limited and Australasia Mirage I-Pty Limited — which were allegedly under his control.

In a related development, The Tribune reported on March 26 that around 50 plots in Sector 104, Mohali — a prime area tied to the PACL case — had been sold illegally at roughly one-third of their market value. This sale is believed to be part of a broader effort to dispose of PACL-linked assets.

The ED’s ongoing investigation aims to uncover the full extent of the scam and recover the diverted funds. More raids and arrests are expected as the case unfolds.