The Enforcement Directorate has seized assets worth millions in connection with a financial fraud investigation at the United Services Club in Mumbai, highlighting the agency's crackdown on money laundering and corruption.
Key Points
- The Enforcement Directorate (ED) has attached assets worth Rs 34.51 crore in connection with a financial fraud at the United Services Club in Mumbai.
- The assets include flats, shops, and fixed deposits linked to Bernadette Bharat Varma and her husband.
- The investigation revealed that funds were allegedly diverted from the club into fake bank accounts.
- Approximately Rs 77 crore was allegedly routed to personal accounts of the accused and their associates.
- The 'proceeds of crime' were used to acquire properties and invested in fixed deposits.
The Enforcement Directorate (ED) has provisionally attached assets worth around Rs 34.51 crore in connection with an alleged financial fraud involving the United Services Club in south Mumbai, an official statement said on Monday.
The attached assets include 35 movable and immovable properties such as flats, shops and fixed deposits linked to Bernadette Bharat Varma, her husband Bharatkumar Shankarlal Varma and others under the Prevention of Money Laundering Act (PMLA).
The United Services Club, located in the Colaba area of Mumbai, is jointly managed by the Army, Navy and Air Force.
The ED investigation is based on an FIR registered at Cuffe Parade police station in February 2025 under various sections of the Bharatiya Nyaya Sanhita.
Details of the Alleged Fraud
According to the agency, the probe revealed that Bernadette, who was serving as deputy secretary (finance) of the United Services Club, allegedly acted "in connivance with her husband" to open multiple "fake bank accounts" resembling those of genuine vendors of the club.
The ED alleged that funds amounting to around Rs 77 crore were diverted from the club into these "fake/dummy bank accounts" and later routed to personal and joint accounts of the accused and their associates.
Investigators said the "proceeds of crime" were used to acquire several immovable properties and were also invested in fixed deposits with various banks.
The agency further alleged that around Rs 11 crore was transferred to the account of a trust, from where the funds were subsequently diverted to accounts linked to a chartered accountant associated with the club, his family members and firms under his control.
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