ED Attaches Assets Worth Rs 34.91 Crore in Nexa Evergreen Fraud Case
The Enforcement Directorate has attached assets worth Rs 34.91 crore in the Nexa Evergreen money laundering investigation.
The Enforcement Directorate (ED) has taken a major step in its investigation into the alleged Nexa Evergreen fraud case by attaching movable and immovable properties valued at Rs 34.91 crore. This action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as part of the agency's ongoing crackdown on illicit financial activities.
Massive Asset Seizure in Separate Investigation
In a related development, the ED announced the attachment of 211 immovable properties worth a staggering Rs 646.58 crore. This massive seizure is linked to the case involving Pancard Clubs Ltd and several others. The attached assets include a diverse range of high-value real estate, such as:
- Commercial office spaces
- Luxury hotels and operational resorts
- Agricultural lands
- Residential properties
These properties are spread across multiple states, including Maharashtra, Kerala, Uttarakhand, Goa, Rajasthan, Himachal Pradesh, Madhya Pradesh, Telangana, and Dadra and Nagar Haveli. The assets are held under the names of Pancard Clubs Ltd (PCL), Panoramic Universal Ltd, their subsidiaries, and various family members or beneficial owners.
The Ponzi Scheme Unmasked
The investigation into Pancard Clubs Ltd began following an FIR by the Dadar Police Station in Mumbai, which was later taken up by the Economic Offences Wing (EOW). The ED's Mumbai Zonal Office-I revealed that the accused had established a complex network of 46 corporate entities under the Panoramic Group to execute their scheme.
The agency stated that these entities operated illegal Ponzi schemes disguised as "Sale of Room Nights" and timeshare holiday memberships. By promising unrealistic returns, they successfully induced over 51 lakh gullible investors across India to hand over their money.
The Scale of Financial Fraud
The financial details uncovered by the ED highlight the massive scale of the deception. Between the fiscal years 1997-98 and 2017-18, PCL allegedly collected approximately Rs 9,577 crore from investors. However, the distribution of these funds was highly skewed:
- Rs 2,858 crore was returned to depositors.
- Rs 2,332 crore was paid out as agent commissions.
- Rs 4,387 crore remained as "Proceeds of Crime," which was diverted and retained by the accused individuals and entities.
Money Laundering and Asset Layering
The federal agency's investigation found that the illegal funds were systematically layered through various shell and dummy companies, such as Shagun Tradelinks Pvt Ltd. These funds were then injected into associate entities like Panoramic Universal Ltd and its various domestic and overseas subsidiaries.
Once the money was integrated, it was used to acquire high-value real estate, resorts, and commercial units across India and abroad. These assets were held in the names of group companies, directors, and their families to project them as untainted property. The ED also noted that the accused made deliberate attempts to frustrate legal proceedings by trying to fraudulently alienate assets that had previously been attached by SEBI and MPID authorities.