Mumbai Crime: Police Arrest CA In ₹77.5 Crore US Club Fraud Case; Sent To Magisterial Custody

Mumbai: In a major development in the ₹77.5 crore US Club cheating case, the Mumbai Police’s Economic Offences Wing (EOW) has arrested chartered accountant Chandraprakash Pandey for allegedly submitting a false audit report that concealed large-scale financial irregularities.

According to EOW officials, Pandey, who had been serving as the club’s auditor since 2020, submitted an audit report in August 2024 claiming that no discrepancies were found in the club’s accounts. Investigators, however, allege that the report was fabricated to cover up a massive siphoning of funds.

The case revolves around alleged financial fraud committed at the Colaba-based US Club, where former deputy secretary (finance) Bernadette Bharat Varma and her husband Bharatkumar Varma have been allegedly named as key accused. The duo, along with Pandey, are accused of misappropriating ₹77.5 crore through fake vendor accounts and forged financial transactions.

An EOW senior official told Free Press Journal that a chargesheet in the case has already been filed. At the time of filing, CA Pandey was absconding. He later surrendered before the court and was remanded to police custody until March 30. Following the end of his police custody, he has now been sent to magisterial custody. The investigation is ongoing, and officials are probing the money trail and the involvement of other possible accomplices in the fraud.

Chartered Accountant C.A. Pandey, accused in a financial fraud involving the U.S. Club, was arrested after surrendering before the Esplande court following a proclamation issued against him.

According to investigation details, Pandey was appointed as auditor of the club in 2020. In July 2024, at the request of the complainant, he conducted an audit and submitted a report claiming that no discrepancies were found in the accounts.

However, police investigations later revealed that Pandey allegedly entered into a criminal conspiracy with other accused persons and played a role in siphoning off proceeds of crime. The diverted funds were allegedly routed through a company named Jyotirgamay Foundation and subsequently transferred into bank accounts linked to Pandey and other co-accused.

After the alleged fraud came to light, a charge sheet was filed and a proclamation was issued against Pandey, declaring him absconding.

In compliance with the proclamation, Pandey surrendered before the Esplande Court, following which he was formally arrested in connection with the case. The court granted police custody of the accused till March 30. Upon completion of police custody, he was remanded to judicial custody on the same day. Further investigation in the case is ongoing.

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