ED Raids Mumbai Firm Over Rs 4,500 Crore Investment Fraud

Mumbai, 4th March 2025: The Enforcement Directorate (ED) carried out searches at four locations linked to a Mumbai-based company and its promoters in connection with a Rs 4,500 crore investment scam that deceived around five lakh investors, officials reported on Monday.

The raids, conducted on February 28, targeted properties associated with Pancard Clubs Limited and others under the Prevention of Money Laundering Act (PMLA), 2002. The investigation pertains to a Collective Investment Scheme that violated provisions of the Securities and Exchange Board of India (Sebi) Act, 1992.

During the operation, officials discovered documents detailing foreign assets currently managed by family members of the late Sudhir Moravekar, former Director of Pancard Clubs Limited. It was also found that these assets were generating income through lease agreements.

The probe stems from an FIR filed by the Economic Offences Wing of the Mumbai Police against Pancard Clubs Limited and its associates under sections of the Indian Penal Code and the Maharashtra Protection of Interest of Depositors (in Financial Establishment) Act, 1999 (MPID).

According to ED findings, Pancard Clubs and its directors introduced investment schemes with durations ranging from three to nine years, offering benefits like hotel discounts, accidental insurance, and high deposit returns. These schemes were allegedly in violation of regulations set by Sebi and the Reserve Bank of India (RBI).

Officials further revealed that evidence seized during the searches pointed to efforts by co-accused individuals and Moravekar’s family members to transfer assets and launder illicit funds. Additionally, digital records were retrieved as part of the investigation, the agency stated.