India’s premier investigating agency, the Central Bureau of Investigation (CBI) and the country’s corporate regulator SEBI have sent their teams to Australia in order to recover millions of dollars invested here by the Pearls group, .
According the newspaper report, the Indian government will submit evidence in the Federal Court to show how the disgraced group cheated poor and “gullible” investors in India and invested $133 million in Australia to buy properties here.
The Indian government will also have investigations conducted in the dealings of the Pearls group in Australia to establish a “larger conspiracy”.
The CBI has charged the Pearl’s group directors-four of whom are awaiting trial- with defrauding hundreds of thousands of investors of over $10 billion (Rs. 50,000 crore) in a Ponzi scheme run between 2009 and 2013. The agency claims $133 million of this money was sent to Australia.
The CBI charge sheet submitted in the court said : “Investigation reveals that the accused directors of (Pearls), in conspiracy with other accused persons, diverted the hard-earned money of gullible investors for investing in real estate in Australia.”
“As substantial amounts of funds have been transferred to Australia … in order to unearth the larger conspiracy, (the) role of other accused persons, and to ascertain the utilisation of funds, letters rogatory will be sent to Australia,” mentions the charge sheet.
The Weekend Australian reported that the Australian authorities including the Australian Securities & Investment Commission and the Australian Federal Police have offered help in the investigations.
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The Pearls group directors established an Australian company, Pearls Australasia in 2009 with a Gold Coast property company, and then invested $62 million to buy a resort. The company spent a further $20 million to refurbish the property.
The Australian partner company of Pearls was not involved in the Pearls group’s operations in India. They said they are ready to help the Indian authorities in their effort to recover funds.
