EOW takes over Rs 7,035 crore pan card probe, files case against 6 directors

The economic offences wing (EOW) took over the probe in PanCard Clubs (PCL) case where more than 50 lakh investors were allegedly duped of approximately Rs 7,035 crore.

Earlier, markets regulator Securities and Exchange Board of India (Sebi) had asked PCL, a timeshare company, to not sell its properties. It had also appointed retired Judge R M Lodha for selling PAL's properties and to use the sale proceeds to refund investors who had put in their money in the company's schemes.

An EOW officer said the agency has registered a case of cheating under the Indian Penal Code and also invoked sections of the Maharashtra Protection of Interest of Depositors (MPID) Act against PCL and its six directors.

"Their head office at Prabhadevi is now shut," said a police officer. It was



Narendra Vataukar (42), a Dadar resident, who lodged a police complaint against PCL on December 10.

"PCL had come up with schemes for hotel stays. They would enrol members and ask them to invest. It would offer holiday packages at these hotels," said an officer.

Several investors who were promised higher returns did not avail of the holiday packages. Meanwhile, an investor complained about this to Sebi, which in turn began an inquiry into the matter.

The regulator found that the company ran a collective investment scheme (CIS) for which Sebi's approval was required. The directors, though, did not have any permission to run this scheme.

Its probe revealed that merely 1% of the investors had used this facility.