The ED attached properties worth Rs 34.91 crore in the Nexa Evergreen fraud case and Rs 646.58 crore in the Pancard Clubs Ltd case under the PMLA. The Pancard case involves a Ponzi scheme that duped over 51 lakh investors of Rs 9,577 crore.

The Enforcement Directorate (ED) has attached movable and immovable properties worth Rs 34.91 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with its money laundering investigation into the alleged Nexa Evergreen fraud case. The attachment has been carried out as part of the agency's ongoing probe into the alleged fraud and related money laundering activities.

Pancard Clubs Ltd Case

In a separate case, the ED on Thursday said it has attached 211 immovable properties amounting to Rs 646.58 crore under the PMLA, 2002, in the case of Pancard Clubs Ltd and others. The attached assets comprise commercial office spaces, luxury hotels, operational resorts, agricultural lands and residential properties located across Maharashtra, Keralam, Uttarakhand, Goa, Rajasthan, Himachal Pradesh, Madhya Pradesh, Telangana, as well as Dadra and Nagar Haveli. These properties are held in the names of Pancard Clubs Ltd (PCL), Panoramic Universal Ltd, their various subsidiary concerns, as well as family members and beneficial owners.

The ED investigation was initiated under the provisions of the PMLA, 2002, based on a First Information Report (FIR) registered by Dadar Police Station, Mumbai, later by the Economic Offences Wing (EOW), Mumbai Police, against Pancard Clubs Ltd and others. The EOW Mumbai Police subsequently filed a chargesheet on December 13, 2021, before a special court in Mumbai.

Investigation Reveals Ponzi Scheme

Investigation conducted by the ED’s Mumbai Zonal Office-I, which attached the properties, revealed that persons involved in the case established a network of 46 corporate entities under the Panoramic Group. “The accused entities floated illegal Ponzi schemes under the façade of ‘Sale of Room Nights’ and timeshare holiday memberships, inducing over 51 lakh gullible investors across India with promises of unrealistic returns,” the federal agency said in a statement.

As per the ED, PCL fraudulently collected Rs 9,577 crore from investors between 1997-98 and 2017-18. Out of the total collections, only Rs 2,858 crore was returned to depositors, while Rs 2,332 crore was paid as agent commissions, leaving Rs 4,387 crore as Proceeds of Crime retained and diverted by the accused entities and key individuals.

Layering and Integration of Funds

The ED investigation further revealed that “the illegal funds were systematically layered through various shell and dummy companies, including Shagun Tradelinks Pvt Ltd, and injected into associate entities like Panoramic Universal Ltd and its domestic and overseas subsidiaries.”

“These Proceeds of Crime were subsequently integrated to acquire high-value real estate properties, resorts, and commercial units across India and abroad in the names of group companies, directors, and their family members, projecting them as untainted properties.”

The investigation also revealed a “deliberate attempt to frustrate legal proceedings through the fraudulent alienation of assets previously attached by SEBI and MPID authorities.” (ANI)

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