The ED is investigating money laundering on the basis of Central Bureau of Investigation's (CBI)'s case under offences of criminal conspiracy, cheating against Bhangoo and his companies PGF and PACL.
Bhangoo is presently in judicial custody after his arrest in 2016. He and his associate companies are accused of cheating over 50 million Indians of nearly $10 billion through a Ponzi scam.
Based on the CBI’s case, ED has now issued a provisional order for the attachment of Bhangoo's properties worth $94 million in Australia.
The properties attached under Prevention of Money Laundering Act (PMLA) include MiiResorts Group 1 Pty Ltd and Sanctuary Cove properties, said the ED official.
According to , Miiresorts Group also used funds to buy Sheraton Mirage Hotel for 62.5 million Australian dollars and sold it later to Australian Wattle Development Pty Ltd.
It is reported that the sale proceeds of 87.37 million Australian dollars were received by McCullough Robertson Lawyers and invested in an interest bearing account with an Australian trading bank.
Who is Nirmal Singh Bhangu
Hotel Sheraton Mirage at Gold Coast was once owned by Bhangu's Pearl group. Source: Supplied
From a milk seller from the Attari village in Punjab to a multimillionaire in Australia, Nirmal Bhangoo has covered a long way to become a corporate titan.
Bhangoo’s journey was allegedly covered on the back of a gargantuan Ponzi scam that involved over ₹45,000 crore. It is also reported that he owns 1.83 lakh acres of land in India.
Bhangoo and other directors of Indian real estate company- Pearls Group were arrested in 2016 after they evaded arrest for many months.
Bhangoo was known for his proximity to the previous ruling party in Punjab, Shiromani Akali Dal. His company Pearls was the official sponsor of the World Kabaddi Cup for many years.
The Scam
Nirmal Singh Bhangoo is the founder of the Pearls Group in India and Australia Source: Supplied
It is alleged that Pearls Group collected funds from investors mostly from northern states of India.
The company had thousands of agents who enrolled small land owners and farmers with the promise of quadrupling their investment in ten years.
In a pyramid structured operation, funds collected from new investors of the firm were allegedly used to repay the earlier investors.
The probe revealed that the company was working as non-banking financial companies without requisite approvals.
Based on the CBI’s case, the ED is now carrying out money laundering probe.
It is reported that Bhangoo who used to own a luxury hotel in Gold Coast may have funnelled at least $130 million into Australia.
