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The Directorate of Enforcement (ED), Mumbai Zonal Office, said on Monday that it conducted search operations at four premises in Mumbai and Delhi on February 28, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 and seized incriminating materials. According to ED, the raids were part of an ongoing investigation into a massive investment fraud involving M/s Pancard Clubs Limited (PCL) and others, in which more than 50 lakh investors were allegedly defrauded of over Rs 4,500 crore through a Collective Investment Scheme (CIS) in violation of the Securities and Exchange Board of India (SEBI) Act, 1992, read with SEBI (CIS) Regulations, 1999. During the searches, the ED discovered incriminating documents detailing overseas assets allegedly linked to the family members of Late Sudhir Moravekar, the former director of M/s Pancard Clubs Limited.
"These assets, which are still under their control, have reportedly been generating lease rental income," ED said in a statement. ED officials believe that these assets form a crucial part of the Proceeds of Crime (PoC). The ED's probe was initiated based on an FIR registered by the Economic Offences Wing (EOW), Mumbai , 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 orchestrating an investment fraud that lured lakhs of investors. Investigations revealed that M/s Pancard Clubs Limited and its directors floated multiple investment schemes with durations ranging from three to nine years. Investors were enticed with promises of hotel discounts, accidental insurance, and high returns on deposits, in blatant violation of SEBI and RBI norms.
The search operations also unearthed documentary evidence indicating that co-accused persons and family members had made attempts to dispose of assets suspected to be linked to the Proceeds of Crime. In addition to physical documents, digital records containing crucial financial details were also seized during the operation. The ED has stated that further investigations are underway to trace additional assets linked to the accused, recover misappropriated funds, and identify other beneficiaries of the fraud.
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