Saturday, January 28, 2012

City Limouzines assets attached

COIMBATORE: There is finally some hope for thousands of depositors
across the country including Chennai, Coimbatore,� Bangalore,
Hyderabad and Mumbai who lost their hard earned money to the
fraudulent City Limouzines India Ltd in 2009 as its properties have
been attached in Chennai.

The company had by a conservative estimate defrauded around 35,000
investors from different walks of life including doctors, lawyers and
journalists, to the tune of `700 crore to `1,000 crore. Nearly a year
after the Economic Offences Wing (EOW) officials in Chennai had sent a
proposal to the State Government for attaching the company’s seized
properties including cash from frozen bank accounts, the Home
Department has issued an ad-interim order attaching the same.

As per the Home Department order issued recently, movable properties
and liquid cash worth `74.98 crore have been attached. The sum
includes `10.81 crore deposits in current accounts maintained in 11
banks, unpaid demand drafts to the tune of `64 crore drawn on 25
banks, and vehicles worth `3.61 lakh. Some of these properties were
held by its sister companies including City Realcom Ltd and Ryewood
Retreat Motels Pvt Ltd. City Limouzines attracted deposits from well
educated persons through a novel modus operandi. We were informed that
if we deposited a minimum of Rs 1.39 lakh, the money would be invested
in purchasing cars in our name and rented out by the company. Out of
the profits, we were promised a monthly return of Rs 7,775 for a
period of five years,” says S Surender, a resident of R S Puram in

The company issued post-dated cheques to investors, which were
honoured only for a few months. “The che- ques started bouncing from
late 2009 and the staff began dodging us ever since.”

Strangely, the Mumbai-based company, which had offices at several
cities, had even been the official sponsor of India Women Hockey team
from 2006 to 2009. Following complaints in multiple cities, the police
in Mumbai had arrested its owners Masood Sayyed Jamadar and Geetha
Umar Razakki. Last month, the Bombay High Court had granted bail to

“In TN,� the company operated under 15 different names including City
Limouzines, City Hospitalities, City Money, City Airlines Pvt Ltd,
Bharat Ratna Dr Baba Sahib Ambedkar Pratisthan and City Cine Vision,”
a police officer said.

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