Mumbai's United Services Club Embroiled in Rs 34.51 Crore Fraud Scandal

The Enforcement Directorate has attached assets worth Rs 34.51 crore linked to an alleged fraud involving Mumbai's United Services Club. The investigation revealed diversion of Rs 77 crore into fake accounts by Bernadette Bharat Varma and associates, used to acquire properties and invest in fixed deposits.

The Enforcement Directorate (ED) has taken significant action by attaching assets valued at approximately Rs 34.51 crore. This is in connection with a major financial fraud tied to Mumbai's United Services Club, as stated in an official release on Monday.

The assets, including 35 movable and immovable properties, are linked to Bernadette Bharat Varma, her husband Bharatkumar Shankarlal Varma, and others. They have been seized under the Prevention of Money Laundering Act (PMLA). The United Services Club, located in Mumbai's Colaba, is operated by the Army, Navy, and Air Force jointly.

The investigation, prompted by an FIR from February 2025, uncovered that Bernadette, then deputy secretary (finance) at the club, allegedly collaborated with her husband to create fake bank accounts imitating those of real club vendors. It is alleged that Rs 77 crore was funneled into these accounts, eventually making its way into the personal accounts of the accused. These funds were used to purchase properties and invest in fixed deposits, with Rs 11 crore diverted further to a trust before reaching a chartered accountant and associated firms.

(With inputs from agencies.)