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From 1997 to 2014, Pan Card Clubs Limited (PCL) collected anywhere between Rs 5,000 crore to Rs 7,000 crore from over 51 lakh investors.
Pan Card Clubs Ltd ran a Ponzi scheme from 1997 to 2014.
It all began with promises that glittered – luxurious holidays, exceptional returns, and secure investments. But behind the glossy facade lay one of the most brazen financial frauds in recent history, which spanned nearly 20 years, swindled more than 51 lakh unsuspecting citizens, and left a trail of deceit, international money laundering, and shattered dreams.
The saga dates back to 1997, when a company named Pan Card Clubs Limited (PCL) began mobilising funds from the public under the pretence of offering holiday memberships. Cleverly branding itself with the term “PAN card” – a name that invoked the familiarity of official government documentation – the company gained instant credibility among average investors, particularly those in smaller towns and cities.
PCL was, in reality, running a massive illegal Collective Investment Scheme (CIS), drawing in money with the bait of high returns and slowly building what authorities later declared to be a classic Ponzi-style operation.
From 1997 to 2014, the company collected anywhere between Rs 5,000 crore to Rs 7,000 crore from over 51 lakh investors. During this period, it operated with impunity. Another entity, Panoramic Universal Limited (PUL), which was closely linked to PCL, also emerged as a key player in this tangled web of financial manipulation.
At the centre of the storm was a man named Sudhir Moravekar, the founder of both PCL and PUL. Considered the kingpin of this scheme, Moravekar allegedly used these companies not to build a holiday empire, but to siphon off vast sums of money. While lakhs of people waited in vain for returns on their investments, Moravekar and his family quietly moved funds across borders, buying properties and businesses overseas.
In one striking instance, investigators found that Rs 99 crore was diverted from PCL to PUL, and then routed directly to accounts controlled by the Moravekar family. The money trail extended far beyond borders. In 2002, PUL bought a hotel in New Zealand, a purchase made without any intimation to the Reserve Bank of India (RBI) – a clear violation of foreign exchange regulations. The hotel was later sold off, and the entity shut down without explanation.
Between 2002 and 2014, approximately Rs 100 crore was allegedly moved to countries including Thailand, the UAE, the United States, and Singapore, used to acquire assets through shell companies and subsidiaries.
In 2014, the Securities and Exchange Board of India (SEBI) declared that PCL was operating an illegal scheme and ordered the company to return investors’ money. SEBI also froze the company’s accounts and seized assets, including a 73.49% stake in PUL.
In 2016, SEBI attached multiple properties and financial assets. In 2017, a formal complaint by a Mumbai resident prompted the Economic Offences Wing (EOW) to launch a criminal investigation, filing a case against six directors of the company. That same year, Sudhir Moravekar died, leaving behind an unfinished scandal and a deeply damaged financial ecosystem.
SEBI’s actions were upheld by the Securities Appellate Tribunal (SAT), which reaffirmed that PCL’s operations were fraudulent. Yet, the process of asset recovery and investor compensation remained sluggish. In 2018, SEBI auctioned 24 properties worth Rs 2,000 crore, but the funds trickled back to investors at a glacial pace.
In 2023, the National Company Law Tribunal (NCLT) began insolvency proceedings against PCL, raising concerns that the move could derail SEBI’s asset recovery process. SEBI protested, arguing that bankruptcy proceedings might shield the culprits and obstruct investor reimbursements.
The plot thickened further in 2024 when the Serious Fraud Investigation Office (SFIO) issued a lookout notice against Moravekar’s son. However, a court later quashed the notice, citing that he was not formally listed as an accused.
Then came the breakthrough.
In January 2025, the Enforcement Directorate (ED) conducted coordinated raids in Mumbai and Delhi, seizing crucial documents linked to foreign properties. And in May 2025, the ED delivered a significant blow to the scam’s remnants – attaching 30 foreign properties collectively worth Rs 54.32 crore. These included 22 properties in Thailand, 6 in the UAE, and 2 in the United States, all purchased between 2002 and 2015 through entities connected to PUL and the Moravekar family.
Investigators revealed that Moravekar’s sons were preparing to liquidate several overseas assets, but the ED acted in time to block those transactions.
While the enforcement agencies have taken steps to recover funds, many investors – spanning from rural households to urban middle-class families – are still waiting for closure.
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