ED Uncovers Key Evidence Following Raids in ₹4,500 Crore Investment Scam
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Synopsis
The Directorate of Enforcement (ED) carried out significant raids in Mumbai and Delhi, seizing incriminating documents related to a ₹4,500 crore investment fraud case involving Pancard Clubs Limited. The investigation uncovers a larger scheme that allegedly defrauded over 50 lakh investors through illegal collective investment practices.
Key Takeaways
- ED conducted raids under PMLA 2002.
- Incriminating documents seized related to Pancard Clubs Limited.
- Over ₹4,500 crore defrauded from investors.
- Assets linked to investment fraud discovered.
- Investigations continue to trace misappropriated funds.
Mumbai, March 3 (NationPress) The Directorate of Enforcement (ED), Mumbai Zonal Office, announced on Monday that it executed search operations at four locations in Mumbai and Delhi on February 28, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and confiscated incriminating materials.
As per ED, these raids were part of an ongoing inquiry into a significant investment fraud involving M/s Pancard Clubs Limited (PCL) and others, where more than 50 lakh investors were reportedly cheated out of over ₹4,500 crore through a Collective Investment Scheme (CIS), violating the Securities and Exchange Board of India (SEBI) Act, 1992, along with SEBI (CIS) Regulations, 1999.
During the searches, the ED uncovered incriminating documents that outline overseas assets allegedly associated with the family members of the Late Sudhir Moravekar, the former director of M/s Pancard Clubs Limited.
According to the ED, “These assets, which are still under their control, have reportedly been generating lease rental income.”
Officials from the ED believe that these assets are a vital part of the Proceeds of Crime (PoC).
The ED initiated its investigation 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 lodged against M/s Pancard Clubs Limited and its directors for allegedly masterminding an investment fraud that misled innumerable investors.
Investigations revealed that M/s Pancard Clubs Limited and its directors launched several investment schemes with terms ranging from three to nine years. Investors were drawn in with promises of hotel discounts, accidental insurance, and high returns on deposits, blatantly disregarding SEBI and RBI regulations.
The search operations also revealed documentary evidence suggesting that co-accused individuals and family members attempted to dispose of assets believed to be linked to the Proceeds of Crime. Alongside physical documents, digital records containing essential financial information were also seized during the operation.
The ED has stated that further investigations are ongoing to trace additional assets associated with the accused, recover misappropriated funds, and identify other beneficiaries of the fraud.
