Bhangu's early life saw him working alongside his brother, selling milk on a bicycle.

Who was Nirmal Singh Bhangu, the founder of Pearl Group? Nirmal Singh Bhangu, the founder of the Pearl Group and the key figure behind a massive Rs45,000 crore scam, passed away on Sunday night in Delhi. Bhangu, a resident of Punjab, had been in Delhi's Tihar Jail since January 2016 following his arrest by the Central Bureau of Investigation (CBI). On Sunday night, he was transferred to Delhi's DDU Hospital after his health worsened, but he was declared dead upon arrival at 7:50 p.m. (Nirmal Singh Bhangu Death News)

Bhangu was accused of orchestrating a multi-crore Ponzi scheme, which ensnared over 5 crore individuals. The scheme collected enormous sums of money, much of which was funneled abroad. Following an investigation, the CBI apprehended Bhangu in January 2016, and the Enforcement Directorate (ED) also launched a subsequent investigation into his activities.

Originating from Barnala district in Punjab, Bhangu's early life saw him working alongside his brother, selling milk on a bicycle. During this period, he also completed his postgraduate studies in political science.

Launch of His Own Company in 1980

In the 1970s, Bhangu relocated to Kolkata in search of employment, eventually working at Peerless, a well-known investment company. He later joined Golden Forest India Limited, a Haryana-based firm that eventually collapsed after defrauding investors. When the company shut down, Bhangu found himself unemployed.

Leveraging his experience with Golden Forest, Bhangu established Pearls Golden Forest (PGF) in 1980. The company promised investors high returns from investments in tree plantations, similar to the operations of Golden Forest India Limited. By 1996, the company had amassed significant funds but was eventually shut down due to investigations by income tax authorities and other regulatory bodies.

Expanding His Empire Overseas

Undeterred, Bhangu launched a new venture, Pearls Agrotech Corporation Limited (PACL), based in Barnala, Punjab. This company operated as a chain system, attracting over 5 crore investors with promises of substantial returns.

Investors were required to deposit small amounts monthly, and Bhangu used these funds to expand the Pearls Group empire, both domestically and internationally. Bhangu invested significant sums in various businesses around the globe.

When the company failed to return the promised funds to its investors, complaints began to surface, eventually leading to a CBI investigation.

Details of the CBI Investigation

The CBI investigation revealed that Bhangu's companies, including Pearls Infrastructure Projects Limited, ARSS Infrastructure Projects Limited, and Jain Infra Projects Limited, were involved in fraudulent activities. These companies launched schemes that convinced people to invest under false pretenses of high returns, misusing over Rs5,500 crore raised from investors across various states.

Investors were issued fake land allotment letters, with much of the land either non-existent, government-owned, or not legally available for sale. Bhangu employed over 23 lakh commission agents, including more than 1,700 senior-level officers, who were paid substantial commissions for recruiting new investors.

Despite being ordered by the Punjab and Haryana High Court to shut down one scheme, Bhangu continued his operations under different company names, using funds from new investors to pay off previous ones. A portion of the funds was funneled into shell entities, with approximately A$132.99 million invested in Australian companies.

Property Seizure Initiated by CM Mann

In May 2023, Punjab Chief Minister Bhagwant Mann pledged to seize Pearls Group's assets and return the investors' money. Following this announcement, the Punjab government began the legal process of confiscating the properties.

Arrest of Bhangu's Wife in 2023

In September 2023, the Punjab Vigilance Bureau arrested Bhangu's wife, Prem Kaur, on charges of disposing of Pearls Group's assets in violation of Supreme Court orders. She was accused of transferring properties to a close relative with the intent to sell them.

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