UP EOW Nabs Barabanki Official in NFBS Scheme Scam, PACL Director Too.

UP EOW Arrests Barabanki Official in NFBS Scheme Scam

• PACL Director in ₹49,000 Cr Fraud

• PACL Director Arrested in Investment Scam

• Economic Offences Wing Cracks Down on Embezzlement

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

The UP EOW has made two major arrests, cracking down on separate multi-crore scams. A Barabanki official was held for embezzling ₹3 crore from a welfare scheme for the poor. Simultaneously, the director of PACL was arrested in a pan-India ₹49,000 crore investment fraud, marking a significant step in “Operation Shikanja.”

Barabanki Official, PACL Director Arrested in Separate Multi-Crore Embezzlement Scandals

The Economic Offences Wing (EOW) of Uttar Pradesh has intensified its crackdown on high-value financial fraud, arresting key figures in two separate multi-crore scams. In a significant development, a Barabanki social welfare department official was arrested for allegedly misappropriating Rs 3 crore from the National Family Benefit Scheme (NFBS). Simultaneously, in a pan-India operation, EOW arrested Gurjant Singh Gill, director of Pearls Agro-tech Corporation Ltd (PACL), in connection with a massive Rs 49,000 crore investment scam.

Click Here To Download the News Attachment

National Family Benefit Scheme Funds Diverted by Officials

The Barabanki probe was initiated from a complaint lodged at Deva Police Station. It revealed a conspiracy where department officials, in collaboration with intermediaries, systematically diverted government aid. The NFBS provides Rs 20,000 to below-poverty-line families following the death of their primary breadwinner. Instead of reaching legitimate beneficiaries, these crucial funds were funneled into the accounts of unscrupulous individuals.

A pivotal figure, Ram Sanehi of Madhav village, was identified as a key player in the embezzlement mechanism. After evading capture, he was finally arrested on Saturday by an EOW team from Lucknow in the Kotwali area of Barabanki. This arrest is seen as a critical step in unraveling the entire network responsible for siphoning welfare funds. The Sprouts News Special Investigation Team (SIT) has learned that further arrests are anticipated as the investigation deepens.

Operation Shikanja Nets PACL Director in Rs 49,000 Crore Scam

In a parallel and vastly larger case, the EOW’s “Operation Shikanja” led to the arrest of PACL director Gurjant Singh Gill in Mohali, Punjab. According to DG EOW Neera Rawat, the company orchestrated one of India’s largest investment frauds, amassing approximately Rs 49,000 crore from investors. The company lured the public with promises of plots and high returns through recurring and fixed deposit schemes that were never fulfilled.

A case was initially registered against PACL by the Registrar of Companies (ROC), Rajasthan, as far back as October 25, 2011. Investigations confirmed that PACL operated without registering as a Non-Banking Financial Company (NBFC) under the RBI Act, 1934. Under Gill’s leadership, the company expanded its illicit operations across 10 states, including Uttar Pradesh, Assam, and Punjab, using a network of branches.

PACL’s Multi-State Network and Modus Operandi Exposed

In Uttar Pradesh alone, branches were established in Mahoba, Sultanpur, Farrukhabad, and Jalaun. The company’s modus operandi involved issuing bond receipts to investors as proof of their investments, which ultimately proved worthless. The scale of the scam became apparent when the Uttar Pradesh government assigned the probe to the EOW after embezzlement allegations surfaced at the PACL branch in Jalaun.

A formal case was subsequently filed at the EOW Police Station in Kanpur. The recent arrest of Director Gill marks a major breakthrough in this long-running investigation, signaling the state’s commitment to bringing high-profile financial offenders to justice. The Sprouts News Special Investigation Team (SIT) notes that this action aligns with increasing inter-state coordination on economic crimes.

Also Read: ED Targets Gupta Companies and Shell Firms in Global Money Laundering Probe.

Crackdown Signals Zero-Tolerance on Financial Crimes

These arrests underscore a fortified zero-tolerance policy towards corruption and financial fraud. The EOW’s actions demonstrate a sophisticated approach to tackling complex crimes that exploit vulnerable citizens, from rural beneficiaries to urban investors. The two cases, though separate, highlight the diverse nature of economic offenses plaguing the system.

Authorities are now focused on tracing the intricate money trails and recovering the embezzled funds. The outcomes of these probes are being closely watched by policymakers and industry stakeholders as a benchmark for enforcement efficacy. As per the Sprouts News Special Investigation Team (SIT), these operations are expected to continue, with more arrests likely in the coming weeks.