Pailan Group luring investors by promising high returns?
Moneylife Digital Team 23 April 2014

Kolkata-based Pailan Group has been raising money through its agents who promise high guaranteed returns on various investment schemes. Some are finding it difficult to get their money back. Is SEBI aware of it?

Despite the scandal over Saradha and other schemes, the Pailan Group of Kolkata continues to run collective investment schemes (CIS) through the network of its agents who promise high guaranteed returns. The financial instruments offered by the agent include debentures and various monthly income schemes (MIS). The Pailan Group claims it is into education, food processing, finance, sports, real estate, jewellery, healthcare, media and entertainment business and so far has collected a whopping Rs900 crore from investors without any permission from market regulator Securities Exchange Board of India (SEBI). At a time when the chief minister of West Bengal has targeted SEBI for the Saradha debacle, it is pertinent to ask whether the Palian group has come under the regulator's radar or not. More importantly, the group is not merely in collection mode, it is apparently finding it difficult to make payments already.

A Moneylife reader, Suman Uppal has written to say that she has not received her interest and maturity amount. “I have been searching for news on Pailan Park Development Authority but surprisingly couldn't find any news of the company. It has closed all its offices in Kolkata after collecting Rs900 crore as debenture investments. Company Law Board (CLB) Kolkata says, as it issued debentures, they do not come under its jurisdiction. When I tried to file a complaint on Ministry of Corporate Affairs (MCA) website it did not work. Why are all news channels and websites silent about the case?” she asked.

Pailan Park Development Authority (PPDA) Ltd, a Pailan Group company, has raised money by distributing secured redeemable non-covertible debentures through its network of agents. It also sold many monthly investment plans backed by gems and jewellery products. Company's official website explains its plans, which gives the option to buy its jewellery products, as well as, cash returns on its maturity. It is offering as high as 62.50% returns in five years.


Investors are feeling cheated and have alleged Pailan Group and its founder, Apurba Kumar Saha that he is responsible for not paying their interest and principal amount even after maturity as per their debentures and MIS plans. Investors also said that its diversified business seems genuine hence they believed agents and invested in Pailan Group's company which later on turned away, regulators should put its founders behind the bars.

There are many complaints against the Pailan Group by investors on the Internet. Here is what an investor has posted on consumercourt.in I purchased 300 units of secured redeemable non convertible debentures having face value of Rs1000 each from PPDA for a period of 15 years. It promised to pay a sum of Rs7500 per month from October 2012 onwards till the date of maturity. According to agreement, PPDA issued credit note (voucher) of Rs7,500 up to August 2013 but since September 2013, I haven't received any vouchers till now even after visiting their office and asking for my money. “Pailan Group is cheater, take drastic action against them, within the Ambit of law,” he wrote.

Jayanta Banerjee, another investor from Kolkata, said on consumercourtforum.in that, “I have a policy of PPDA, CIS Scheme(Recurring Deposit). After maturity on 11 July 2013, I went to the Pailan office to withdraw my matured fund but the company's chairman Apurba Saha told me to come after some days. I went many a times but he denied giving me any money and stopped answering my phone calls. I already filed a complaint to SEBI. My maturity amount is over Rs1.36 lakh. My father is a cancer patient, I need money and company has not paid me till now.”

A third investor says he invested Rs4 lakh in (Rs3.2 lakh in MIS plans and Rs80,000 in fixed deposit scheme) PPDA, but since July 2013, he has not received any interest as per the MIS plan. He also contacted the local office and head office but no one replied his complaints. He said he invested all his mother's assets into Pailan Group's plans on goodwill of the company but he has been cheated by them.

One such agent advertised it in typical multi-level marketing (MLM) way, Pailan Park Development Authority provides “BEST EARNING OPPORTUNITY in both MLM & MONEY MARKETING Concept”. Another agent on his blog explained Debentures of PPDA as “Secure Government Debenture” with promise of 100% government as well as bank security and offers unbelievable 27% interest on Debentures per month!!!


Earlier in February 2014, agents of Pailan Grop said at a press conference that they had filed a petition in the Calcutta high court seeking to recover Rs900 crore. They alleged that this group had lately turned delinquent, says a report from Mint newspaper.

Last year in May, two functionaries of Pailan group who were collecting deposits from customers without valid permission from Reserve Bank of India (RBI) and SEBI, were arrested by Police. The police says functionaries of several chit fund group were arrested on charges of forgery, irregularities of cash transaction and lack of valid licenses as per reports from PTI.

Moneylife has written several articles on frauds that lure gullible investors by floating various MLM  and CIS and frequently warned investors that “If it looks too good to be true, it usually is.” This is clearly another in the same category.

Our email sent to SEBI, about the money collection schemes of Pailan Group remained unanswered till writing the story.

Pailan Group founder, Apurba Kumar Saha



 

Comments
Smita Guha
8 years ago
I have also invested a lump sum in the Pailan group and it has been 3 years now...i have not received a single penny till now...i am running from pillar to post and yet have not received any reply... I request the judiciary of our state to take over and resolve so that we can get our hard earned money back.
PINTU HAZRA
9 years ago
I HAVE ALSO INVESTED 18 LACKS IN PAILAN PARK & DEVELOPMENT AUTHORITY THROUGH A NO 1 CHITTER AGENT SAGAR DUTTA(SATINANDI) AT BARDHAMAN BRANCH .BUT THEY ARE NOT RETURNING ANY MONEY
WHAT SHOULD DO NOW .DO NOT ANY RESPONSE FROM AGEN & COMPANY . HOW CAN I GET MY INVEST MONEY.PLZGIVE ME SOME SUGGESTION .& PRAY TO BOTH GOVT STATE & CENTRAL SOLVE THIS MATTER &SAVE US CONTACT NO -7093998451
PINTU HAZRA
Amit Kumar
9 years ago
Hello sir, i m Sarwan Kumar Shaw. I have also invested money in Pailan group. Now they are not returning my money.. what should do now?? How can i get my deposit money? Pls give me some suggestion. contact no- 8961721947
S B BATABYAL
10 years ago
I HAVE INVESTED RS. 500000 ON 23/01/12 , I NEED RETURN THE DEPOSITED MONEY.


S.B.BATABYAL
07694925364
E. mail : [email protected]
Singur, Hooghly , West Bemngal- 712407
S B BATABYAL
10 years ago
I HAVE INVESTED RS. 500000 ON 23/01/12 , I NEED RETURN THE DEPOSITED MONEY.


S.B.BATABYAL
07694925364
E. mail : [email protected]
Singur, Hooghly , West Bemngal- 712407
S B BATABYAL
10 years ago
I AM S.B.BATABYAL(MOB-7694925364)AND EMAIL ID : [email protected]
Invested Rs. 500000 in 2012
I need return back the invested amount.

SINGUR , HOOGHLY , WEST BENGAL
Manoj Mishra
10 years ago
nother money scam in west bengal -- i have a difficutly geting my own money and there is a no response from any one --
arindam das
10 years ago
hi friends as already stated before the Pailan Group had returned Rs 25 lack before the Hon'ble Shyamal Sen Commission of Inquiry in respect of the depositors /investors in relation to case filed by me.The Hon'ble Commission had already stayed the property sale transfer of the said group amounting to approx 2200 corer to safeguard the interest of the depositors .The next day of hearing is fixed on 9th September 2014 when the said company had been directed to submit a scheme in relation to refund of money .Arindam Das @Advocate High Court at Calcutta 9874966969
SUDHAKAR
Replied to arindam das comment 10 years ago
Hallo Sirji, Namashkar.
pls, can you explain, what descision was taken on 9th Sep 2014 hearing of HC????
Thanks.
SHAHANE S S, AURANGABAD(MH)
Chitra Roy
10 years ago
Hi...I am Chitra Roy. Last year my agent inspired me to do a Gems & Jewellery plan for 1 yr.I di a plan for Rs. 500/-, whose matured valued is 6825/-. I paid Rs. 500/- monthly till Feb.14. After that Agent has told that "Now Co. is not receiving no money, there is some problem.Now no need to make any further payment." My matured date was in June,14 and I have already invested Rs. 4000/-. Now my agent is saying that as per RBI's decision from Dec. Co. will return back all the money to all investors which is due from Sep., 13. I don't know whether it's true or wrong. I have just one question why any step not taken by our state administrator? Why till now all these frauds are freely lived in society? Is this our administration? Shame our state Govt.
Gorav Kamra
10 years ago
Pailan cheated in haryana as well, they collected money and many ofices has been closed now, currently they are working in Rajasthan,now they are saying that they have sold out their company to GR group and they will return your money but there is no address or E-mail id of GR agro Group...
Deepanjan in Senior management of Pilan clearly denied to return our money
Mobile of deepanjan roy is 8697974486
SUDHAKAR
10 years ago
HAI, I AM SUDHAKAR SHAHANE, FROM AURANGABAD, (MAH). I HAVE ALSO CAME IN TOUCH WITH FRAUD COY, I.E. PAILAN GROUP, THROUGH AGENT AND I LOST MY RS.50,000/- . I HAVE OPENED RD ACCOUNT FOR ONE YR, AND MATURITY DONE ON AUG 2013. ONE YR COMPLETED, BUT STILL, I DID NOT RECD MY PAYMENTS. APURB SHAH , IS A CHEATER ONE.
arindam das
10 years ago
pailan returning money for 22 depositors on 24th July before Hon'ble Justice Shyamal Sen Commission in the matters filled by me
sunita Agarwal
10 years ago
My name is sunita agarwal my agent code is hoko000901..Apurba Kumar Saha u cheater u cheat all the agent in pailan my recuring money n mu fixed deposit money is 400000/- rupees give me my money god will see u...cheater Apurba saha
u k saluja
1 decade ago
Kindly write an article about Micro Technologies India Limited (CMD Mr.Aditya Sekhar) and AVON Corporation Limited (MD Mr.Pankaj Saraiya) both Mumbai based company who have not paid money back to their matured FD Holders and now both the companies have gone into liquidation and stakeholders are suffering. Shareholders also suffering. Pl see comments posted on your website by so many small investors who are feeling cheated by managements of these two companies. Thanks u.k.saluja, New Delhi (a senior citizen)
Arup Guha
1 decade ago
My name is Arup Guha and I live at Naihati, 24PGS (N), Bappa (Mobile no. 8436071698,9153263917) & Biswajit Dey (Mo. 9609107396) from Hapra an agent came through my brother in-law (Joy Biswas)& convenience that Pailan Group is no. 1 money investor. They said 100% Bank Guaranteed & 100% Gov Security on Recurring Deposit. On that basis My Aunty was purchased a MIS scheme for 2 years 1 lakh & my brother also purchased a FD for 10 years.

Now my aunty’ MIS period is over & asked them (Bapp & Biswajit Dey) to provide the amount (1 lakh). They told her that company is facing problem & delay to provide the maturity amount. Day another day she facing problem over 4 months, but no positive answered get them.

Now she decide that she is going to take legal action.
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