ED gets overseas assets of money launderers attached

Summary - The assets attached abroad include both bank accounts and immovable property.


Intensifying the battle against unaccounted wealth, India has got Switzerland and Australia to attach assets of those accused of money laundering in India, and is now working towards getting the proceeds repatriated.
The assets attached abroad include both bank accounts and immovable property.
Enforcement director Rajan Katoch said that bilateral cooperation in intelligence and investigations with several key jurisdictions have been growing, leading to tangible outcomes. he cited successful overseas attachments in Australia and Switzerland.
“We hope to record more such in coming years,” he said in his opening remarks on enforcement day celebrations, attended by President Pranab Mukherjee and revenue secretary Rajeev Takru.
Sources told FE that one of the assets attached abroad is a bank deposit of close to $3 million in Switzerland by City Limouzine and its promoter Sayed Masood Jamadar, who is facing charges of money laundering. The asset attached in Australia is an immovable property worth about $10 million. India is now trying to get the asset liquidated and get the proceeds repatriated, said the source.
ED got the two nations to attach the assets by convincing them that these assets were proceeds of crime in India, which should be repatriated to the country. India's money-laundering laws provide for depriving offenders of the proceeds of the crime as well as prosecuting hem for the offence.
ED has in the recent past stepped up efforts to book money-laundering and foreign exchange-related offences. In FY14, it attached 127 assets worth R1,759 crore compared to just 65 a year ago. Also, in FY14, ED investigated 1,836 cases against 1,288 a year ago. The agency has so far attached assets worth R5,300 crore.
"ED should continue to ensure that external trade is facilitated, and investment environment is stimulated by sifting the genuine foreign exchange transactions from those that are fraudulent and undesirable," Pranab Mukherjee said in his address at the event. Revenue secretary Rajeev Takru proposed strengthening of ED's IT infrastructure and and an incentive scheme for officials.

MUMBAI: In 21 different orders, a district forum has provided relief to investors duped by fraudulent schemes of City Limouzines (India) Ltd. While each complainant will receive their invested amounts ranging from Rs 4 lakh to almost Rs 10 lakh, they will also receive compensation. The South Mumbai District Consumer Disputes Redressal Forum passed the orders ex parte after City Realcom Ltd and City Limousines (India) Ltd did not file their replies and the complainants' version remained unchallenged. According to the complainants, the firm promised attractive financial returns through different schemes. They said that they had invested huge amounts in five-year scheme. While the returns were to be in lakhs, the firm paid them only a fraction of the amount. They said that a number of investors had invested their hard money, but the opposite parties did not comply with their assurance. The forum said that the copy of the agreement executed by the opposite parties placed on record the chart of expected amount which was to be refunded. The forum said that this was in contradicted the amounts actually received by the complainants.

MUMBAI: The Enforcement Directorate (ED) has attached fly-by-night operator City Group's properties and cash totalling Rs 133.3 crore in the last four years, including Rs 6 crore in Switzerland banks. The latest attachment, both movable and immovable properties worth Rs 6.48 crore, was done recently, officials said.

City Group companies, City Limouzine and City Realcom, had duped thousands across the country of over Rs 1,000 crore by promising unrealistic returns on investments through various schemes. In one of the schemes, City Limouzine offered 48% returns on investments. City Realcom, in one such scheme, had promised Rs 7,775 every month for five years and Rs 50,000 on maturity on an investment of Rs 1.39 lakh.

The police across the country had registered FIRs against company chairman, Sayed Masood, and other directors for conspiracy and cheating in 2009. The ED arrested him in 2012 and he is in judicial custody. The ED had registered a case under the Prevention of Money Laundering Act as proceeds of crime were used for amassing wealth. The ED said the properties and money seized were proceeds of crime, a pre-requisite for attachment. ED is also pushing for amendments in the Act so that properties attached are auctioned and proceeds distributed among the investors. Currently, property attached under the Act becomes that of government.

The ED has issued 21 provisional attachment orders attaching proceeds of crime. The market value of the assets may be Rs 250 crore, officials said. The ED has filed three complaints, equivalent to chargesheet, in the special court.

Investors duped by City Limo’s fraud schemes win damages

MUMBAI: In 21 different orders, a district forum has provided relief to investors duped by fraudulent schemes of City Limouzines (India) Ltd. While each complainant will receive their invested amounts ranging from Rs 4 lakh to almost Rs 10 lakh, they will also receive compensation.

The South Mumbai District Consumer Disputes Redressal Forum passed the orders ex parte after City Realcom Ltd and City Limousines (India) Ltd did not file their replies and the complainants' version remained unchallenged.

According to the complainants, the firm promised attractive financial returns through different schemes. They said that they had invested huge amounts in five-year scheme. While the returns were to be in lakhs, the firm paid them only a fraction of the amount.

They said that a number of investors had invested their hard money, but the opposite parties did not comply with their assurance.

The forum said that the copy of the agreement executed by the opposite parties placed on record the chart of expected amount which was to be refunded.

The forum said that this was in contradicted the amounts actually received by the complainants.