ED attaches Rs 34.5 crore in assets in Rs 77 crore Mumbai tri-services club fraud

The Enforcement Directorate (ED) has provisionally attached assets worth Rs 34.51 crore in connection with a money-laundering probe linked to an alleged financial fraud involving the United Services Club in south Mumbai , where investigators say nearly Rs 77 crore was siphoned off through a network of fake bank accounts.

In a statement on Monday, the agency said the attached assets include 35 movable and immovable properties , such as flats, shops and bank fixed deposits , held in the names of Bernadette Bharat Varma, her husband Bharatkumar Shankarlal Varma , and other associated individuals. The attachment has been carried out under the Prevention of Money Laundering Act (PMLA) as part of an ongoing investigation.

The ED’s investigation stems from a February 2025 FIR registered at Cuffe Parade police station under provisions of the Bharatiya Nyaya Sanhita after authorities detected large-scale financial irregularities at the club.

The United Services Club , located in Mumbai’s Colaba area and established in 1937, is a tri-services institution jointly managed by the Indian Army, Navy and Air Force , catering primarily to serving and retired defence personnel.

According to the agency, Bernadette Varma, who served as deputy secretary (finance) of the club , allegedly conspired with her husband to open multiple fake bank accounts that closely resembled the names of genuine vendors associated with the club.

Investigators said the accused used these dummy vendor accounts to divert approximately Rs 77 crore from the club over a period of time. The funds were subsequently routed to personal and joint bank accounts of the accused, their family members and associates , suggesting a structured layering of financial transactions to conceal the origin of the money.

The ED said the proceeds of crime were used to acquire several immovable properties and to invest in fixed deposits across different banks in an attempt to integrate the illicit funds into the financial system.

Investigators also alleged that around Rs 11 crore was transferred to the account of Jyotirgamay Foundation , from where the funds were subsequently routed to accounts linked to chartered accountant Chandra Prakash Pandey , his family members and firms under his control. Pandey was reportedly associated with the club in a professional capacity. The case originally came to light after financial discrepancies were detected during a routine audit of the club’s accounts , prompting a detailed scrutiny and a complaint by a Navy officer, following which the matter was taken up by law-enforcement agencies.