ED Raids Uncover Rs 4,500 Crore Fraud in Pancard Clubs Ltd Scheme

The Enforcement Directorate raided Pancard Clubs Limited, uncovering a Rs 4,500 crore fraud involving 50 lakh investors. The Mumbai-based company and its promoters operated a collective investment scheme, violating the SEBI Act. Incriminating documents, including details of overseas assets, were seized during the raids.

The Enforcement Directorate (ED) has uncovered a significant investment fraud involving over 50 lakh investors and a massive financial discrepancy amounting to Rs 4,500 crore. This revelation emerged following a stringent raid on the premises of Pancard Clubs Limited (PCL) and its former directors based in Mumbai.

The ED's operations, conducted on February 28, targeted a collective investment scheme (CIS) that violated the SEBI Act. Pancard Clubs Ltd orchestrated various enticing investment schemes promising extravagant returns and benefits, flagrantly disregarding SEBI and RBI regulations.

The investigation unearthed incriminating documents, including assets abroad, linked to late Sudhir Moraveker, a former director. These overseas assets reportedly generate considerable rental income, and there were attempts to liquidate them. The ED's findings have prompted legal actions under the Prevention of Money Laundering Act (PMLA).