2 days ago
US Club embezzlement case: HC refuses pre-arrest bail to former deputy secretary
MUMBAI: The Bombay high court on Monday rejected the anticipatory bail plea of the main accused in the alleged embezzlement of around ₹77.52 crore from the defence-run United Services Club, popularly known as the US Club, in Colaba.
A single judge bench of justice Rajesh Patil rejected the pre-arrest bail plea of the Bernadette Varma, the club's former deputy finance secretary, in which she allegedly admitted that she had purchased 21 properties in Mumbai—14 flats and seven shops—in her and her husband's name, and luxury cars like a Range Rover, a Mercedes and an MG Hector from the embezzled funds. Her bail plea said that she later sold the cars and then invested over ₹8 crore in fixed deposits and other financial instruments through consultants.
Justice Patil rejected the plea, saying she had failed to make a case for the court to grant protection.
Varma and two others, including the auditor appointed by the defence-run club, were booked in February based on a complaint lodged by Captain Vishnusaurabh Sharma, the club's secretary. According to the complaint, the accused were allegedly involved in fraudulent activities between January 2005 and October 2024 that resulted in financial losses worth ₹77.52 crore for the club, which is jointly managed by the Indian Army, Navy, and Air Force.
Captain Sharma told the police that when he perused the club's balance sheet prepared by Varma for the financial year 2023-24, which was to be submitted to the club's chartered accountant, he noticed that the value of the liquor stock mentioned in the document was quite high.
When he inquired about the high liquor stock, he was told that there had been a mistake in maintaining the stock records, as the liquor was sourced from different places at various rates. The club then asked a chartered accountancy firm, CP Pandey and Company, to undertake a special audit.
However, the firm's audit report in August 2024 did not raise any issues related to the liquor stock, nor any other financial irregularities. Meanwhile, Varma resigned from her job citing health reasons and was eventually relieved in October 2024.
The fraud came to light in January 2025 when the club's president received an anonymous letter revealing huge financial irregularities in the club's operation. The letter added that Varma had transferred ₹11 crore to CP Pandey and Co between August 5 and October 9, 2024.
According to Captain Sharma's complaint, when he confronted Varma about the allegations made in the letter, she accepted that she had transferred the amount and also shared the details on WhatsApp. A further investigation by the club revealed that during her tenure, Varma had allegedly opened several bank accounts in the names of the club's vendors and misappropriated around ₹77 crore by transferring money to these bank accounts.
