PACL Investors Receive Rs. 3,720.67 Crore Refund as Lodha Committee Completed Eligible Claims

The Securities and Exchange Board of India informed the Board about the progress made by the Justice (Retd.) R.M. Lodha Committee in the PACL Ltd. matter. The Committee has held 144 meetings, including seven since the previous update, and has discussed refund activities, property auctions, and investor complaints while periodically submitting status reports to the Supreme Court. As of 5 May 2026, refunds aggregating Rs. 3,720.67 crore have been disbursed against 35,74,401 eligible applications, covering all eligible investors. The Committee has secured possession of approximately 43,000 property documents across 22 states, restrained their transfer, and auctioned 904 properties in 31 districts across seven states, realizing approximately Rs. 3,894 crore. Recovery Officers are adjudicating objections and interlocutory applications under Section 28A of the SEBI Act pursuant to Supreme Court directions. With around Rs. 1,200 crore available in the designated bank account, the Committee has also opened a rectification window from 7 May to 7 August 2026 for updating investors’ bank account details.

Also Read SEBI Press Release No. 33/2026 Dated: 19/06/2026: SEBI Approves Major Regulatory Reforms to Simplify Securities Market Processes

Securities and Exchange Board of India

Dated: 19th June 2026

Justice (Retd.) R.M. Lodha Committee (In the matter of PACL Ltd.) – Developments made by the Committee

1. Objective

1.1. This memorandum seeks to update the Board on the developments made by Justice (Retd.) R.M. Lodha Committee (In the matter of PACL Ltd.), a Committee appointed by Hon’ble Supreme Court for the purpose of disposing of the properties of PACL Ltd. and making refund to investors who have invested their money in companies/ schemes that were operated by PACL Ltd. This update is pursuant to the information provided to the Board via information memorandum, placed before the Board during its meeting held on 12.09.2025.

2. Developments made by Justice (Retd.) R.M. Lodha Committee in the matter of PACL Ltd. are as follows:

2.1. Pursuant to the information provided earlier, the Committee has had further 7 meetings wherein around 100 agenda items inter-alia pertaining to refund activity, auction process, complaints from investors etc. were discussed and appropriate actions were undertaken. The Committee has so far held 144 meetings. The Committee has further periodically submitted reports before the Hon’ble Supreme Court including a status report dated 09.05.2026, a copy of which is attached as Annexure-A.

2.2. Since the last information provided to the Board, the Committee has effected refund to additional 13,58,269 eligible applications, an amount aggregating to 2,557.67 crores. Thus, as on 05.05.2026, the Committee has effected refunds in respect of 35,74,401 eligible applications aggregating to a total disbursal of ₹ 3,720.67 Crore. In the process, the Committee has refunded to all the eligible investors their eligible claim. The Committee has provided facility for investors to check the status of refund in SEBI PACL Refund Portal  (https://www.sebipaclrefund.co.in/Refund/Enquiry).

2.3. The Committee has been handed over possession of around 43,000 property documents belonging to PACL Ltd./PACL Associates, spread across 22 states in India. The Committee has issued communications to the Inspector General of Registrations of respective states to take necessary steps to not to effect the registration/mutation/sale etc. of the properties wherein PACL Ltd. and/or its group/associate companies, have, in any manner, a right/interest.

2.4. The Committee receives objections from various individuals/entities objecting the restraint on the properties. Earlier, a retired district judge, Shri R.S. Virk was appointed by the Committee to hear these objections and pass orders recommending either continuation of the restraint or to release the properties. However, vide order dated 08.08.2024, the Hon’ble Supreme court directed that, no new application/objection to be filed before Shri R.S. Virk, and the Committee may deal with such applications/objections, if filed before it, and dispose them of as per the provisions contained under Section-28A of the SEBI Act. In compliance thereof, The objection applications are heard by five Panels consisting of 03 Recovery Officers each. In terms of Standard Operating Procedure (SoP) for the Panel of Recovery Officers the cases are assigned to these 05 Panels on round robin basis.

2.5. The details of the number of applications/ objections that the Recovery Officers attached to the Committee have, as on date, attended is given below:

Table No. 1: Status of objections received

2.6. In terms of the directions contained in the order dated 19.02.2026 passed by the Hon’ble Supreme Court, 106 interlocutory applications falling within Category ‘B’i.e. matters relating to appeals filed against the orders passed by Mr. R.S. Virk, are being examined and adjudicated by the Recovery Officers appointed under Section 28A of the SEBI Act, 1992. The said Recovery Officers exercise powers analogous to those vested in a Recovery Officer under Section 220 read with the Second Schedule to the Income-tax Act, 1961. The Hon’ble Supreme Court vide order dated 14.05.2026 has extended time for completion of hearing and passing order in such IAs by three months from 31.05.2026.

2.7. The status of hearing of IA before the Panel of Recovery Officers is as follows :

Table 2: Status of hearing before the Panel of Recovery Officers in 106 IAs referred by the Hon’ble Supreme Court as on 05.05.2026

2.8. As enumerated in paras 3.9 and 3.10 in the information memorandum 2025, Committee has initiated the process for auction of properties of PACL in district clusters. The Committee has successfully undertaken auction of 904 properties in 31 districts spread across 7 states. So far properties worth approx. Rs. 3,894 Crore have been auctioned.

2.9. The Committee has approx. Rs. 1200 Crore in the designated bank account of the Committee. As way forward, the Committee has initiated providing rectification opportunity for all eligible investors for updation of bank account details. The window for the rectification is available from 07.05.2026 to 07.08.2026.

3. This memorandum is placed before the Board, for information.

Encls : Annexure-A (45 pages)