An Udaipur resort is one of the multiple properties that have been put on the block by Securities and Exchange Board of India (SEBI) for auctioning for recovery of dues from Pancard Clubs Limited (PCL).

PCL has been charged with duping 51.55 lakh investors by over Rs 7035/- Crore. Towards this, SEBI has already auctioned 57 properties and sealed 27 properties. A fresh notification was released by SEBI last week for sale of immovable properties and vehicles across the country.

Of the properties to be put up for auction includes Lake City Resort in Udaipur. Lake City resort is situated opposite Maharana Pratap Airport, Udaipur and falls under village Nahar Mangra (Dhunimata). The property is spread over 3 Lakh square feet and has 8 royale suits, 24 deluxe rooms and 11 standard rooms.

PCL had mobilized Rs 7035/- Crore from 51.55 lakh investors through its holiday schemes from 2002-03 to 2013-14. Till 2010-11, all functioning of the PCL was normal. In 2010, when SEBI scrutinised documents of PCL, it noted that PCL had raised over Rs 7000 Cr while its share capital stood at a meagre 50 Lakhs. SEBI asked the company and director not to mobilise any fresh money or launch any new scheme.

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PCL was in Nov 2015 asked by Securities Appellate Tribunal (SAT) to pay off the investors immediately but PCL failed to comply with this direction. It was also found that PCL had given false affidavits that investors had voluntarily switched over to non-refundable schemes. This was done to deprive investors of benefits that they were initially promised. PCL had offered 50% return on money invested for three years, 100% after 6 years, 150% returns after 9 years and upto 200% returns after 10 years.