Former US Club exec booked for siphoning off ₹77.52 Cr

The United Services Club, popularly known as the US Club, has serving and retired officials of the Indian Army, Indian Navy and Indian Air Force as permanent members while other government officials are admitted as temporary members

MUMBAI: Based on a complaint by a senior Indian Navy officer, the Cuffe Parade police have registered a case against the former deputy finance secretary of the US Club in Colaba for allegedly siphoning off around ₹77.52 crore from its bank accounts with the help of the statutory forensic auditor and a non-profit organisation. The police said the money was embezzled over the last 20 years by opening several fake bank accounts in the names of vendors of the club. An anonymous letter brought the whole scam to light.

Former US Club exec booked for siphoning off ₹77.52 Cr

The United Services Club, popularly known as the US Club, has serving and retired officials of the Indian Army, Indian Navy and Indian Air Force as permanent members while other government officials are admitted as temporary members. The club’s income comes from membership fees, sports and other social activities, the bar and restaurant and donations.

Officials of the Economic Offences Wing said the case was registered by Captain Vishnusaurabh Sharma, secretary of the US Club. “As per the 2023-2024 balance sheet, the club’s income was ₹17.11 crore and expenses were ₹14.61 crore, with a net profit of ₹2.49 crore,” said a police officer. “On an average, the club earned a profit of ₹1.5 to ₹2.5 crore every year.”

The officer said that the deputy finance secretary was responsible for maintaining the income and expenses books. “They give everything to the chartered accountant, who makes a balance sheet and then gives it back to the deputy finance secretary,” he said. “The deputy finance secretary then gives it to the secretary, after which it is put before the management committee which has members of all the three armies.”

The accused Bernedet Verma was working as the deputy finance secretary at the club since 2000. She used to do the accounts and appoint a chartered accountant and get the balance sheet made by him.

For the year 2023-2024, it was found that there were discrepancies relating to liquor stocks in the account books which were to be submitted to the CA firm (C P Pandey and Company, which had been conducting the audits of the club since 2020). The firm submitted its special audit report in August 2024 with all the corrections, clearing the balance sheet, pointing out the liquor stocks issue, and giving suggestions.

“On August 6, 2024, Verma, citing health reasons, resigned from the job and was relieved in October 2024. In January 2025, the US Club received an anonymous letter about a fraud by her and the CA firm,” said the police officer. “When Verma was questioned, she admitted to sending a donation to a non-profit organisation based in Thane without taking permission. The CA told the authorities that he had made the balance sheet on the information given by Verma and there was no wrongdoing on his part.”

It was subsequently found that since 2005, Verma had made various fake accounts of vendors—for instance, if a vendor’s name was Rama Enterprises, she created an account in the name of Rama Enterprises 1 and transferred money there. A total of ₹77.52 crore was transferred, out of which ₹11 crore was transferred to the non-profit organisation’s bank account.

“It was found that taking advantage of the club’s faith in her, Verma had made several bank accounts in the name of the vendors and transferred the money,” said the police officer. “The CA, Chandra Prakash Pandey, and the non-profit organisation are also prima facie part of the FIR.”

The case has been registered under Sections 316 (4) (criminal breach of trust by clerks and servants), 318 (4) (cheating), 336 (2) (forgery), 344 (falsification of accounts by employees) and 61 (2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita, 2023.

Special audit being ordered: Club

In a letter to the club’s members, its secretary Captain V Saurabh Dutta on Wednesday detailed the sequence of events and highlighted that the financial anomalies dated back to 2005, adding that the management committee had been reconstituted.

“A few months earlier, as part of routine checks by the secretary, some irregularities were noticed. These were referred to the contracted chartered accountant, with request for conduct of a special audit. This was done, and brought out only minor procedural errors, with recommendations for improvement, which were duly instituted,” he wrote.

However, based on certain other inputs, received a few weeks ago, the club management directly conducted a closer scrutiny of the financial documents and records, wherein major anomalies in the accounts since 2005 were discovered, which merit further formal and detailed investigation, the letter read.

“Accordingly, a Special Audit by an independent Govt. certified Chartered Accountant is being ordered, and the matter has also been informed to Civil Police for investigation and to ascertain likely criminal liabilities. The Management Committee has also been reconstituted, along with sub-committees, to strengthen the functioning of the Club.”

“We understand that news like this can be disconcerting but rest assured that the Club is committed towards transparency and zero-tolerance of misconduct in such matters. While the irregularities are being duly investigated, by expert and authorized agencies, with a view to bring the culprits and wrongdoers to justice and to recover any financial misappropriation, the Club will continue to function maintaining its high standards of service.”