The Directorate of Enforcement (ED), Mumbai Zonal Office, has filed a chargesheet under the Prevention of Money Laundering Act, 2002 (PMLA) against Bernadette Bharat Varma, her husband Bharatkumar Shankarlal Varma, and nine others before the Special Court (PMLA), Mumbai, in a case involving the alleged laundering of over ₹79 crore from the United Services Club. The chargesheet was filed on 30 September 2026, and the Special Court has since ordered the issuance of pre-cognisance notices to all accused.

How the Alleged Fraud Was Carried Out

According to the ED, Bernadette Bharat Varma served as Ex-Deputy Secretary (Finance) at the United Services Club and allegedly exploited the trust placed in her by the institution. She is accused of opening fake bank accounts in the names of the club's vendors and transferring approximately ₹77.52 crore into these accounts.

The ED's investigation further revealed that Bernadette, in alleged connivance with her husband Bharatkumar Shankarlal Varma, diverted more than ₹79 crore belonging to the club into multiple dummy bank accounts. These accounts were reportedly opened and operated fraudulently in names closely resembling genuine vendors of the United Services Club.

Layering and Lifestyle Spending

According to the ED, the accused subsequently layered the proceeds of crime through numerous inter-account transfers across various dummy entities. The funds were then funnelled into their personal bank accounts, joint accounts, and accounts of family members.

Part of the diverted funds were allegedly used to acquire immovable properties, fixed deposits, luxury vehicles, and to finance foreign travel for the family, along with maintaining a generally luxury lifestyle, the agency stated.

The Chartered Accountant Angle

The fraudulent transactions reportedly came to light during an audit of the United Services Club conducted by a Chartered Accountant appointed in August 2024. However, after the irregularities were detected, the accused allegedly transferred around ₹11 crore of the proceeds of crime to a Foundation/Trust, reportedly pursuant to illegal demands made by the same Chartered Accountant. According to the ED, those funds were primarily used by the Chartered Accountant and/or his relatives and associates.

Attachments and Ongoing Investigation

The ED had earlier provisionally attached several immovable properties — including flats, land, and shops in Mumbai and the Raigad area — along with movable assets such as fixed deposits and bank balances, totalling more than ₹47 crore under Section 5 of the PMLA, 2002.

The investigation was initiated on the basis of an FIR registered by Cuffe Parade Police Station, Mumbai, under various sections of the Bharatiya Nyaya Sanhita (BNS), 2023. The agency has stated that further investigation in the matter is ongoing, and additional developments are expected as the Special Court proceeds with the case.