SFIO moves NCLT to freeze assets of pancard clubs

New Delhi: The Serious Fraud Investigation Office (SFIO) has moved the National Company Law Tribunal (NCLT) to freeze assets of Pancard Clubs, a time share company that raised ₹7,000 crore from five million members and has gone bust, according to people in the know.

Though Pancard Clubs ostensibly raised funds to admit members into a time share programme that gave them a share of holiday time at tourist properties owned by the company, the membership was a disguise for an investment scheme that promised a fixed return to the members.

NCLT admitted the company for bankruptcy proceedings on Saturday and appointed Rajesh Sheth as the resolution professional. It has not heard SFIO's application, which was registered on August 17.


Mumbai-headquartered Pancard Clubs did not respond to emailed queries. SFIO is the second government authority to be looking into the affairs of the company. The Securities and Exchange Board of India or Sebi is investigating the company for running an unregistered collective investment scheme (CIS).

The stock market regulator has put up the company's properties for e-auction. Sebi is against the admission of the company into bankruptcy proceedings and had opposed the plea of the investors at NCLT. The company's promoter is said to have passed away in 2017, according to sources ET spoke with.

The other directors of the company are senior citizens and are said to be absconding.