Mumbai: Rs 77.52 Crore Fraud Uncovered at Defence-Run Club; Two Individuals & NGO Booked

A massive financial fraud amounting to ₹77.52 crore has been unearthed at the United Services Club (US Club), a defence-administered establishment in Colaba, Mumbai. This prestigious club is operated by the Indian Army, Navy, and Air Force. Following an official complaint from the Navy, a case has been registered against two individuals and a Non-Governmental Organization (NGO) for fraud and forgery.

According to the complaint, the accused were involved in financial irregularities at the club between January 2005 and October 2024, causing significant monetary losses to the institution.

Sources within the police department confirmed that Captain Vishnusaurabh Sharma (54), a serving Navy officer, lodged the complaint with the Economic Offences Wing (EOW) of the Mumbai Police. The case is currently being investigated, with initial proceedings handled by the Cuffe Parade Police Station.

The source from the Defence revealed that the fraud came to light during a routine audit conducted a few months ago. Upon further internal review by the club secretary, a special audit was ordered, which exposed large-scale financial discrepancies.

A Defence Public Relations Officer said tha the United Services Club, Colaba, is a 97 years old Tri-Services Club. A few months earlier, as part of a routine audit, a discrepancy was noticed by the Secretary of the Club. This led to a special audit by the contracted CA and, subsequently, detailed scrutiny of the financial accounts were undertaken on instructions of the Club Management, whereupon significant anomalies were discovered. 

Accordingly, an FIR has been lodged with the civil police to properly investigate the matter. Further, a detailed Special audit by an independent Charted Accountant has been ordered. 

The Defence forces and US Club are committed to maintaining the highest standards of conduct and financial probity, and all cooperation will be extended to the law enforcement and financial agencies to identify any wrong-doing and ensure justice.

The case has been registered under multiple sections of the Bhartiya Nyay Sanhita (BNS), including Sections 316(4), 336(2), 344, and 61(2), among others. Further investigation is underway.