₹4,500 cr Pancard Clubs fraud: ED conducts searches in Mumbai, Delhi

The investors were promised high rates of returns against the deposits, ignoring prevailing norms of the SEBI and the Reserve Bank of India (RBI), ED officials said.

MUMBAI: The Mumbai unit of the Enforcement Directorate (ED) has conducted searches in the city and Delhi as part of its money laundering investigation related to the alleged ₹4,500 crore investment fraud case against Pancard Clubs Limited (PCL) and others, in which over 50 lakh investors were duped.

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The case pertains to a Collective Investment Scheme (CIS), allegedly run in contravention of the SEBI (Securities and Exchange Board of India) Act and SEBI (CIS) Regulations, in which more than 50 lakh investors were allegedly duped of over ₹4,500 crore. ED’s investigation revealed that PCL and its directors had allegedly floated various investment schemes of different durations, ranging from three to nine years, with promises related to hotel discounting, accidental insurance and other benefits.

The investors were promised high rates of returns against the deposits, ignoring prevailing norms of the SEBI and the Reserve Bank of India (RBI), ED officials said.

During the search operations conducted on Friday at four locations in Mumbai and Delhi under the provisions of the Prevention of Money-Laundering Act (PMLA), various documents containing details of overseas assets currently being operated by the family members of the now-deceased main accused, Sudhir Moraveker, were recovered and seized by the agency, ED officials said.

“Further, it was also found that these assets have been yielding lease rental income,” an ED official said. The search operations further revealed documentary evidence showing that attempts were made to dispose of the assets, suspected of being part of the case’s Proceeds of Crime, by the case’s co-accused and others.

The searches also yielded digital records that were seized and are being scrutinised for their evidentiary value in the case. ED initiated its investigation based on an FIR registered by Economic Offence Wing (EOW) of the Mumbai police, under various sections of the Indian Penal Code and the Maharashtra Protection of Interest of Depositors (in Financial Establishment) Act (MPID), against PCL and others.