In 2010, Australian cricketer Brett Lee endorsed an Indian infrastructure group – Pearls Group. He shot an advertisement where he is seen building sand castles with children.
Now, this company and his owner – Nirmal Singh Bhangoo has been accused of being the architect of, what is being called, largest scam in India’s history.
What is this scam?
Pearls Group and Pearls Australiasia is owned and managed by Nirmal Singh Bhangoo. Pearls Group has been accused of duping over 50 mn Indian investors to the tune of $10 billion. The group attracted investors through a Ponzi scheme and in return, promised land to the investors.
Many Indians park their savings into land and gold. Bhangoo’s company operated 256 offices across India. Agents were employed to get investors who were often small town farmers, shopkeepers, salaried employees. These investors were promised that their investments would double within 6 years and quadruple in 10 years.
Securities and Exchange Board of India (SEBI) is conducting its own investigation into the matter. SEBI’s senior lawyer Mr. Pratap Venugopal has been quoted in the Australian today saying that most of times, the same plot of land was sold to multiple investors.
According to Mr. Venugopal, the money gathered through these investors was funnelled then funnelled to different countries including Australia via Russian banks.
Pearls Group funnelled at least $130 million into Australia.
Scam under investigation
India’s Central Bureau of Investigation (CBI) is conducting the probe into this scam.
CBI arrested Nirmal Singh Bhangoo and his relatives who held positions as Company Directors, in January. They are in jail and have been denied bail.
Who is Nirmal Singh Bhangoo?
Nirmal Singh Bhangoo holds many positions in his company – Pearls Group. He is the Chairman and Managing Director of Pearls Group. He is the former Chairman of Pearls Australiasia. Nirmal Singh Bhangoo has lately emerged as a powerplayer in Brisbane’s property market.
Bhangoo and his associates had over 1000 bank accounts and now they have been frozen by CBI.
Nirmal Singh Bhangoo’s Pearls Australiasia bought Sheraton Mirage on the Gold Coast in 2009 for $62mn and spent $20 mn on renovating it.
Will Brett Lee be examined about this Ponzi Scheme?
Australian cricketer Brett Lee endorsed Bhangoo’s Pearls Group in 2010. As per a report in news.com.au, Lee’s former manager – Neil Maxwell has denied being aware about Bhangoo’s money-laundering and fraudulent activities.
However, according to the report that appeared on front page on The Australian today, says that the lawyers involved in the case will examine the role of celebrities such as Lee who endorsed Pearls.
Other cricketers will be investigated too
Indian cricketers Yuvraj Singh and Harbhajan Singh received plots from the Pearls group in Mohali (Punjab). CBI is investigating cricketers involved with the schemes of Pearls group, says the report.
