Nirmal Singh Bhangoo, who went from being a milkman to the owner of a financial firm and then executed the Rs 45,000 crore chit fund scam, died on Sunday at a Delhi hospital due to illness. The Pearls Group founder, who was lodged in Tihar Jail, was admitted to the hospital after his health deteriorated. His death has left a cloud of uncertainty over the fate of 5.5 crore investors, many of whom are still waiting to recover their lost savings. Out of these 5.5 crore investors, only 21 lakh people were refunded with their money, while the rest 5.25 crore investors are still waiting for a refund.
Nirmal Singh Bhangoo once sold milk door-to-door on a bicycle in Chamkaur Sahib village, Ropar, Punjab. But fortune took a dramatic turn, and Bhangoo went on to build a business empire valued at nearly Rs 2,00,000 crore. In the early days of his life, Bhangoo’s humble beginnings as a milkman gave way to bigger ambitions. In 1970, he moved to Kolkata, where he began working at a chit fund company called Peerless. It was here, and later at Golden Forest India Limited, that Bhangoo learned the intricacies of the chit fund business.
After gaining a decade of experience in various companies, Bhangoo founded Pearls Gold Forest Limited in 1980. This chit fund company attracted investors by promising high returns. Over time, his business flourished at an astonishing rate. However, the facade came crashing down in 2013-2014, when the Pearls Chit Fund scam was exposed, revealing an embezzlement of Rs 45,000 crore.
In this massive scam, approximately 5.5 crore investors lost their money, though some investors claim the amount could be as high as Rs 60,000 crore. To address the situation, the Justice Lodha Committee was established in 2015 to facilitate the return of investors’ money. So far, 21 lakh investors have received some of their funds, but over 5.25 crore people are still awaiting their refund. The refund process is being conducted under the supervision of SEBI.
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