City Group Investors Keep Fingers Crossed

Published: 01st July 2015 03:43 AM




CHENNAI: Hopes increased for thousands of investors who were duped in the
immense Ponzi scam six years ago, that came to be known as the ‘City Group
Scam’, routed through several companies such as City Limouzines and City
Realcomm, headed by promoters Sayed Md Masood and his wife.

In the last two weeks, the Official Liquidator’s (OL) office has mailed out
several admission notices for investors’ claims after Rs 150 crore was
seized by the Enforcement Directorate in Singapore on Monday.

“This is a good thing and a huge bonus to investors like us, who have been
wondering whether we will get any of our money back,” confessed Advocate
Zulfiqar Ali Khan, who coordinated the efforts of investors to get the
money back.

Over 35,000 investors have filed claims in Tamil Nadu alone.

“I have finally received my admission notice from the OL in Mumbai, after
months of waiting. I hope this will get resolved in half a year,” said an
investor who preferred anonymity.

Zulfiqar Ali Khan confirmed that the process of getting the money back had
accelerated.

“The last few weeks several admission notices to claims were mailed. Nearly
65 per cent of the investors who submitted claim forms have got their
admission notices. This has raised up hopes and expectations.

“While I think six months is too ambitious for the process to be completed,
I am confident that it will be distributed within a year,” said Khan, who
is also the president, South Chennai City Group Investors’ Welfare
Association.

The Rs 150 crore that has been attached and included in the kitty for
liquidation “will be handed over to the Official Liquidator for the City
Group eventually. It might take around six months,” said the source.

A number of investors had not yet submitted claims.

“For both (groups of) people who have not submitted claims and for those
who have, the Rs 150 crore seized will almost double the money that will be
available for distribution.

“If people have not yet submitted claims, they can approach us and we will
help them out,” said Khan.

The scam left thousands of investors high and dry.

One of the companies, City Limouzines, had promised a return of 48 per cent
on investment.