The Enforcement Directorate (ED) has provisionally attached 30 overseas assets valued at ₹54.32 crore, belonging to Mumbai-based Panoramic Universal Ltd (PUL) and the late Sudhir Moravekar, in connection with the Pancard Clubs investment fraud case. The attached properties are located in Thailand, the United Arab Emirates (UAE), and the United States of America (USA).
The ED initiated an investigation based on a First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Mumbai Police, concerning offenses under various sections of the Indian Penal Code (IPC) and the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 (MPID).
The investigation revealed that Pancard Clubs Limited (PCL) unauthorizedly collected investments from approximately 5.1 million investors across India between 1997 and 2017 and failed to return over ₹5,000 crore to many of them. The EOW has filed a chargesheet against PCL, PUL, 44 other related companies, six directors of PCL, and five marketing representatives of PCL under various sections of the IPC and the MPID Act.
ED's investigation further revealed that approximately ₹99 crore of the proceeds of crime (POC) were diverted from PCL to PUL, in addition to diversions to the personal accounts of family members of the deceased accused, Sudhir Moravekar. It was also discovered that in 2002, PUL acquired a hotel in New Zealand through Overseas Direct Investments (ODI). This asset was later sold, and the Wholly Owned Subsidiary in New Zealand was closed without proper reporting to the Reserve Bank of India (RBI) or the relevant bank. ODI investments were also made in the USA, UAE, Thailand, and Singapore, with remittances equivalent to approximately ₹100 crore sent between 2002 and 2014.
Pancard Clubs Limited had launched multiple investment schemes disguised as holiday memberships, hotel stays, and insurance-linked packages. However, investors did not receive the promised benefits, leading to complaints with the Securities and Exchange Board of India (SEBI). SEBI's investigation found that Pancard Clubs was operating a Collective Investment Scheme (CIS) without regulatory approval, rendering the operation illegal. These schemes promised high returns and additional perks while disregarding SEBI and RBI guidelines.
The ED's searches in Mumbai and Delhi uncovered documents detailing overseas assets managed by relatives of Sudhir Moravekar, which generated lease rental income. Evidence suggested attempts by co-accused individuals and family members to dispose of assets suspected to be proceeds of crime. Digital records were also seized during the operations.
The dispute between Pancard Clubs and its investors has been ongoing for about a decade. In 2016, SEBI directed Pancard Clubs to refund the investors' money. However, the funds available in the company's accounts were insufficient to cover the dues, leading to a directive not to alienate the company's shareholdings in its subsidiaries.
The ED's actions are part of an ongoing effort to recover funds and prosecute those involved in the ₹4,500 crore investment fraud. The agency will continue to investigate the movement of funds and take action against individuals and entities involved in the scam.
