Kanwaljeet Singh Toor, one of the accused in the Rs 60,000 crore Pearl group scam case, who was currently lodged at the Rohini prison in the national capital has passed away, officials said on Tuesday

He said that they had earlier registered a Preliminary Enquiry on the directions of the Supreme Court against Pearls Group, which had allegedly collected around Rs 60,000 crore from around five crore investors all across the country by illegally operating different investment schemes, without any statutory approval, with an intention to cheat them.

The accused had given land guarantee to the investors to lure them. The people were told that they would be getting an interest of 12.5 per cent if they would invest. 

They were offered free accidental insurance and income tax free maturity on their investments. The accused had also promised the investors that the value of the land that they were purchasing would multiply fast.

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How a Ponzi scheme operates and dupes the people

Later on the basis of the enquiry a case was registered against Ms. PGF Limited, Ms PACL Limited, Nirmal Singh Bhangoo and other Directors of these two flagship companies of the Pearls Group.

The CBI registered a case in February 2014,  New Delhi Companies Pearls Agrotech Corporation Limited (PACL) and Pearl’s Golden Forest Limited (PGFL) that were used to run the Ponzi scheme. 

The case was registered under sections of cheating (420) and criminal conspiracy (120 (B) of the Indian Penal Code. 

In its FIR, CBI claimed that PACL and PGF were running the schemes illegally and both the companies were allegedly engaged in fraudulent activities including forgery in their day-to-day operations. 

Investigation also revealed that the accused persons fraudulently diverted the alleged funds collected under the aegis of Jaipurbased private company for purported investment in Australian companies.

“Chander Bhushan Dhillon, Prem Seth, Manmohan Kamal Mahajan, Mohanlal Sehajpal, Kanwaljit Singh Toor are the employees of the Pearls Group who have been placed under arrest. 

During feb 2016 CBI has frozen 1,300 bank accounts valuing Rs 280 crore and an additional Rs 108 crore was deposited in Delhi High Court.

Apart from them we arrested Delhi, Chandigarh and Kolkata-based businessmen Praveen Kumar Agarwal, Mannoj Kumar Jain, Akash Agarwal, Anil Kumar Khemka, Subhash Agarwal and Rajesh,” a CBI official had said then.