Monday, April 18, 2016

Fast track trial of City Limouzines chief: ED to SC

Fast track trial of City Limouzines chief: ED to SC

The latest move by the agency comes after the Singapore government has said that it will repatriate the ill gotten gains of about Rs 280 crore lying in the foreign accounts of Masood only after his final conviction.


The Enforcement Directorate (ED)has written to the Supreme Court requesting it to direct the lower court to fast track the trial of Sayed Mohamed Masood, chairman of City Limouzines India Ltd, who ran an alleged ponzi scheme in India till 2009, according to sources in the agency.
The latest move by the agency comes after the Singapore government has said that it will repatriate the ill gotten gains of about Rs 280 crore lying in the foreign accounts of Masood only after his final conviction. The Singapore government has also set a deadline for repatriation of funds.Masood is currently in jail.
“If ED fails to get a conviction in the case within three years, Singapore will lift the freeze on Masood’s foreign accounts and he will be allowed to use the money,” said an ED official who did not want to be named.
The ED has provisionally attached the bank accounts of Masood in Singapore under the Prevention of Money Laundering Act (PMLA).
Last year, the Supreme Court had directed transfer of 132 cases pending against Masood in various courts across the country to a special court in Mumbai which deals with PMLA. This was done to expedite the trial in the City Limouzines case. Despite the apex court order, till now only 40 odd cases have been transferred to the Mumbai court so far and the trial in the case is yet to begin , said ED sources.
“We want the Supreme Court to fast track the case and monitor its progress, otherwise given the three year deadline, ED will lose the money it has attached in Singapore, “ said another official.
The ED is probing a case under PMLA against City Limouzines and Masood. It is alleged that two City Group companies – City Limouzines and City Realcom – collected over Rs 1,000 crore from thousands of investors across the country by floating car rental schemes and promising unrealistic returns of up to 48 per cent on investments. In 2009, the companies defaulted on payment to investors and more than 42,000 cheques issued by it were dishonoured, the ED said.
Subsequently, several FIRs were registered against Masood and his companies in Mumbai, Karnataka, Rajasthan, Andhra Pradesh and Delhi for criminal conspiracy, cheating and breach of trust.
In Chennai alone at least 35,000 investors have filed claims with the Tamil Nadu Economic Offices Wing.
Last year in May, Masood and his wife Chand Kauser Mohamed Masood were named in Switzerland’s official gazette with regard to ongoing tax probes in India. They are among five Indian nationals with Swiss bank accounts whose names have been made public.

Published:January 8, 2016

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