Thursday, May 8, 2014

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.

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