The Enforcement Directorate has filed a prosecution complaint against former United Services Club deputy secretary (finance) Bernadette Bharat Varma, her husband Bharatkumar Shankarlal Varma and nine others in an alleged money-laundering case involving more than ₹79 crore. Filed before a special PMLA court in Mumbai on 30 September 2026, the complaint alleges that funds were transferred through accounts opened in the names of fictitious vendors resembling genuine suppliers. The agency has provisionally attached assets worth more than ₹47 crore. The allegations remain subject to judicial proceedings
United Services Club Money Laundering Case Sees ED Chargesheet Against Former Official
The Enforcement Directorate (ED) has filed a charge sheet against Bernadette Bharat Varma, her husband and nine others for allegedly diverting over Rs 79 crore from Mumbai’s United Services Club. Provisional attachment of assets valued at more than ₹47 crore.
The United Services Club money laundering case has reached a new legal stage with the Directorate of Enforcement (ED), Mumbai Zonal Office, lodging a chargesheet against ex-club official Bernadette Bharat Varma, her husband and nine others. The filing states that the money of the Mumbai-based club was diverted and laundered.
The chargesheet was filed on September 30, 2026, before the Special Court under the Prevention of Money Laundering Act (PMLA), Mumbai, an ED press release said. The case pertains to alleged financial transactions of over ₹79 crore, while properties and other assets worth over ₹47 crore have been provisionally attached.
ED chargesheet details under the PMLA
The chargesheet mentions Section 3 of the Prevention of Money Laundering Act, 2002, which defines the offence of money laundering and is punishable under Section 4. The Special Court has ordered issuance of pre-cognisance notices to the accused.
The ED had initiated the investigation on the basis of a First Information Report registered by the Cuffe Parade Police Station, Mumbai, under various provisions of the Bharatiya Nyaya Sanhita (BNS), 2023. The agency is looking into claims that club money was transferred into accounts connected to alleged vendors.
Bernadette Bharat Varma was earlier Deputy Secretary (Finance), United Services Club. The ED has claimed that she misused the trust reposed in her position to route transfers to bank accounts opened in the names of vendors of the club.
The agency said that about Rs 77.52 crore was transferred to such accounts. Investigators also say that Bernadette and her husband Bharatkumar Shankarlal Varma siphoned off more than ₹79 crore of the club’s funds through multiple dummy accounts.
Alleged fund diversion and financial transactions
The accounts were fraudulently opened and operated by Bharat Kumar Varma in the name of fictitious vendors, resembling the names of genuine vendors, past or present, associated with the United Services Club, the ED said. The arrangements were used to divert money away from the organisation, investigators said.
The agency further alleges that Bernadette and Bharat Varma layered the suspected proceeds of crime by transferring them through multiple transactions between accounts of dummy entities. The accounts were fraudulently opened and operated by Bharat Kumar Varma in the names of fictitious vendors, similar to the names of real vendors, either past or present, associated with the United Services Club, the ED said. The arrangements were used to siphon money out of the organisation, investigators said.
The agency further said Bernadette and Bharat Varma layered the suspected proceeds of crime by transferring them through multiple transactions between accounts of dummy entities.
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Club audit and alleged ₹11 crore transfer
The ED probe also looked into what happened when suspicious transactions were found during an audit of the United Services Club. The transactions that led to further scrutiny were apparently identified in August 2024 by a chartered accountant appointed.
The agency said the accused later transferred around ₹11 crore to a foundation or trust after the chartered accountant allegedly made illegal demands. The ED said these funds were mainly used by the accountant and/or his relatives and associates.
Another aspect of the investigation is the circumstances of this alleged transfer. The account available does not suggest whether any separate proceedings have been initiated against the chartered accountant or the foundation or trust involved.
Assets worth over ₹47 crore provisionally attached
Earlier, the ED had provisionally attached immovable properties including flats, land and shops in Mumbai and the Raigad area. The action also included movable assets such as fixed deposits, bank balances, and the total value was more than ₹47 crore.
The attachment was made under Section 5 of PMLA, 2002. Provisional attachment is a legal measure to preserve suspected proceeds of crime until the statutory process and adjudication are complete.
The case remains under investigation, according to the agency. Further proceedings will determine how the allegations are examined in court, while the accused retains the right to contest the charges in accordance with the law.
Sprouts News will continue to track significant developments in the case as further information becomes available through official statements and court proceedings.
