Winning Bizness Desk

Mumbai. Nirmal Singh Bhangu, the controversial figure behind the massive ₹45,000 crore Pearls Group chit fund scam, has passed away, leaving millions of investors in uncertainty. Bhangu, who was incarcerated in Tihar Jail, was admitted to a Delhi hospital after his health deteriorated, where he later succumbed to his illness. His death raises pressing questions about the fate of the colossal sum embezzled by his company and the 5.5 crore investors who are still awaiting their refunds.

From Humble Beginnings to Infamy

Bhangu's journey from a milkman in a small Punjabi village to the head of a financial empire is as astonishing as it is troubling. Born in Chamkaur Sahib village, Ropar, Punjab, he initially made a living selling milk door-to-door. However, his ambition led him to Kolkata in 1970, where he worked at a chit fund company, Peerless, and later learned the ropes of the business at Golden Forest India Limited. In 1980, Bhangu founded Pearls Gold Forest Limited, a chit fund company that promised high returns to its investors. Over the years, Pearls Group grew rapidly, attracting millions of investors with the allure of lucrative returns. However, the company’s meteoric rise came to a crashing halt in 2013-2014 when the scam was exposed, revealing that ₹45,000 crore had been siphoned off in the name of a savings scheme. Some estimates from investors suggest that the total amount swindled could be as high as ₹60,000 crore.

The Impact on Investors

The aftermath of the scam has been devastating for the 5.5 crore investors who put their faith and money into Pearls Group. Despite the formation of the Justice Lodha Committee in 2015 to facilitate the return of funds, only 21 lakh investors have received their money back. The remaining 5.25 crore investors continue to wait for justice, with the refunds being managed under the supervision of SEBI. Bhangu's death adds a new layer of complexity to the ongoing efforts to recover the embezzled funds. With the mastermind of the operation no longer alive, there are growing concerns about whether the remaining investors will ever see their money returned. The situation is further complicated by the vast network of operations and transactions orchestrated by Bhangu, which authorities are still unraveling.

Past Imperfect, Future Uncertain

As the investigation continues, the future of the ₹45,000 crore remains uncertain. Bhangu's passing leaves behind a legacy of broken trust and financial ruin for millions. The coming months will be crucial in determining how, or if, the remaining funds can be recovered and distributed to the victims of one of India’s most notorious financial scams.