EOW to probe Rs 7,000 crore PanCard Club investment cheating case

The economic offences wing (EOW) has reportedly taken over the probe in PanCard Club (PCL) investment cheating case in which more than 5 million investors from across the country were allegedly duped of more than Rs 7,000 crore.

A Times of India report, citing sources, 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 against PCL and its six directors.

" We have just taken over the probe from the police station and will start collecting documents related to the case and recording of victims' statements," an EOW officer told TOI.

"It was an investor who approached Dadar police station and lodged a cheating complaint of Rs 40,000. That apart, 82 more investors approached EOW with similar complaints against PCL. Sebi officials have told EOW that there are 51 lakh investors and PCL collected Rs 7,035 crore as investment," the officer said.

The development comes after the firm failed to comply with Security Exchange Board of India's (SEBI) orders.

Sebi had asked the firm to not sell any of its properties and return investors funds within three months. PCL had challenged the order in the Securities Appellate Tribunal (SAT) but failed to get any relief.

SEBI has attached 34 properties of PCL including land parcels and resorts, and frozen over 250 bank accounts.

The market regulator had found the company running illegal collective investment schemes. It had ordered a probe into the scheme after receiving a complaint from an investor.

PCL had come up with a scheme of holiday packages and promised a high return to investors.