Friday, June 10, 2011

City Limouzine cheating case-10jun-2011

The Bombay high court on Wednesday directed the Economic
Offences Wing (EOW) of the Mumbai police to submit a status report in
investigation of City Limouzine cheating case within two weeks.

A division bench of Justice Ranjana Desai and Justice R V More, while
hearing public interest litigations (PILs) filed by several investors,
observed: "It is a big racket where several people have been cheated
and needs to be investigated."

Thousands of investors across the country lost their money in the
investment scheme floated by City Limouzine. In 2002, the company,
promoted by Sayed Masood, offered investors a return of 48% on their
investments. On an investment of Rs 97,000, the company offered
investors Rs 4,000 every month for five years. The amount collected by
the company was to be used to purchase Maruti Omni cars, which were to
be registered in the names of investors. The investors were to be paid
the profit from the income generated by giving these vehicles on hire.
At the end of the five-year period, the vehicle was to be returned to
the investors.

In 2007, cheques issued by the company started bouncing. The company
promised to return the investors' money and even held a meeting with
them. But the company failed and Masood and other directors were
arrested. The Enforcement Directorate is also investigating the case
under the Prevention of Money Laundering Act.

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