Mumbai: The Enforcement Directorate (ED) conducted searches at four locations in Mumbai and Delhi on February 28, in connection with a massive Rs 4,500 crore collective investment scheme fraud linked to Pancard Clubs Limited (PCL). The searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002, following alleged violations of the SEBI Act, 1992, and SEBI (CIS) Regulations, 1999. The agency Said on Monday
During the searches, the ED seized various incriminating documents having details of overseas assets presently being operated by family members of the main accused, Late Shri Sudhir Moraveker, the former director of Pancard Clubs Limited. According to the central agency, it was also found that these assets were generating lease rental income.
The scam, which allegedly duped over 50 lakh investors, has been under investigation after an FIR was registered by the Economic Offences Wing (EOW) Mumbai under the IPC and Maharashtra Protection of Interest of Depositors (MPID) Act, 1999.
The ED's actions are based on a predicate offence registered by the Economic Offences Wing of the Mumbai police under various sections of the Indian Penal Code (IPC) and the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act against Pancard Clubs Limited and others, which was initiated in 2017.
Pancard Clubs had launched various schemes for hotel stays, enrolling members and offering holiday packages. After failing to receive the promised benefits, one investor filed a complaint with the Securities and Exchange Board of India (SEBI), whose inquiry revealed that the company had been operating a collective investment scheme (CIS) that required approval, which the directors never sought.Consequently, SEBI initiated action, banning the company from collecting public funds and directing it to refund investors' money.
The ED's investigation indicated that Pancard Clubs and its directors had created numerous investment schemes with durations ranging from three to nine years. These schemes allegedly promised hotel discounts, accidental insurance, and other benefits, including high returns on public deposits, all while disregarding the regulations set forth by SEBI and the Reserve Bank of India (RBI).
The search operation further revealed documentary evidence showing that attempts were made to dispose of the assets, prima facie being part of Proceeds of Crime, by the co-accused and the family members. Digital records were also found and seized during the course of the search operation.
Pancard Clubs Limited and its directors have been facing legal proceedings for several years. In 2016, SEBI ordered the attachment of properties and bank accounts linked to the company to recover investor funds. Additionally, SEBI imposed penalties on the firm's promoters and barred them from securities markets.
With the fresh searches and seizures of the incriminating documents, the ED aims to further build its case against those involved and ensure that defrauded investors can reclaim their money. The agency is likely to summon key individuals for questioning and may expand its probe into related financial networks involved in laundering the illicit funds.
.jpg)
