ED seizes incriminating documents after raids in Rs 4,500 crore investment fraud case
ED seizes incriminating documents during raids in Mumbai and Delhi in connection with a ₹4,500 crore investment fraud involving Pancard Clubs Limited. Investigation reveals overseas assets linked to the accused.
Mumbai: The Enforcement Directorate (ED), Mumbai Zonal Office, has intensified its crackdown on financial fraud by conducting extensive search operations at multiple locations in Mumbai and Delhi.
The raids, carried out on February 28 under the Prevention of Money Laundering Act (PMLA), 2002, led to the seizure of crucial documents linked to a massive Rs 4,500 crore investment fraud allegedly orchestrated by M/s Pancard Clubs Limited (PCL) and its associates.
Table of Contents
Massive Investment Fraud Involving Over 50 Lakh Investors
According to the ED, the fraudulent investment scheme, run by PCL, duped more than 50 lakh investors across India by promising lucrative returns through a Collective Investment Scheme (CIS). This scheme was in direct violation of the Securities and Exchange Board of India (SEBI) Act, 1992, and SEBI (CIS) Regulations, 1999.
Investigators revealed that M/s Pancard Clubs Limited and its directors enticed investors with promises of attractive benefits such as high returns, hotel discounts, and accidental insurance. The company introduced multiple investment schemes with tenures ranging from three to nine years, violating SEBI and Reserve Bank of India (RBI) norms.
Raids Uncover Overseas Assets and Suspicious Financial Transactions
During the raids, the ED uncovered crucial documents pointing to overseas assets allegedly linked to the family members of Late Sudhir Moravekar, former director of PCL. These assets, reportedly generating significant lease rental income, remain under the control of his family members, raising concerns about the laundering of illicit funds.
The ED has identified these properties as part of the Proceeds of Crime (PoC), further reinforcing the agency’s commitment to tracking and recovering misappropriated assets.
Investigation Initiated Based on EOW FIR
The ED’s probe into the massive scam was launched after the Economic Offences Wing (EOW), Mumbai, registered an FIR under various sections of the Indian Penal Code (IPC), 1860, and the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID Act). The complaint was filed against M/s Pancard Clubs Limited and its directors for allegedly masterminding an elaborate investment fraud that lured lakhs of investors.
Attempts to Dispose of Assets Detected
Further, investigators discovered documentary evidence indicating that co-accused individuals and family members had attempted to dispose of assets suspected to be linked to the fraud. In addition to physical documents, the ED also seized crucial digital records containing sensitive financial data that could help trace further assets linked to the accused.
Ongoing Investigation to Recover Funds and Identify Beneficiaries
The ED has reaffirmed its commitment to tracing additional assets, recovering siphoned funds, and identifying other beneficiaries of the fraudulent scheme. Authorities are now working to map out a complete picture of the financial network used to siphon off investors’ money.
With investigations ongoing, further action is expected as the ED intensifies its crackdown on fraudulent investment schemes and strengthens regulatory oversight to prevent similar scams in the future.
Key Takeaways:
- ED conducted raids at multiple locations in Mumbai and Delhi in connection with a Rs 4,500 crore investment fraud.
- M/s Pancard Clubs Limited (PCL) allegedly defrauded over 50 lakh investors through a Collective Investment Scheme (CIS).
- Investigators uncovered evidence of overseas assets linked to the family of former director Late Sudhir Moravekar.
- The case originated from an FIR filed by the Economic Offences Wing (EOW), Mumbai.
- The ED seized incriminating documents and digital records, revealing attempts to dispose of illicit assets.
- Further investigations are underway to trace additional assets and recover funds siphoned from investors.
The ED’s latest operation underscores the government’s ongoing efforts to dismantle fraudulent financial networks and ensure justice for defrauded investors.
