Wednesday, March 4, 2015

Consumer Forum asks 2 companies to pay around Rs4.5L to 10 investors

Thursday, 17 April 2014 - 8:45am IST | Agency: DNA

The south Mumbai district consumer forum in its recent orders directed the directors of two finance companies -- City Realcom Ltd and City Limouzines Ltd, to pay back the invested amount to 10 investors, after the complainants had approached the consumer forum. The forum has ordered the two finance companies to pay approximately Rs4.5 lakh along with the compensation cost of Rs8,000 toward the delay and litigation cost of Rs2,000 to the investors.
The two finance companies were in news from 2009, when the firms had allegedly duped investors by floating Ponzi schemes. The Economic Offence Wing (EOW) arrested the two directors, Gita Rajaki and Masud Khan, in 2012 and both are behind bars.
In 2011, 10 investors from Mumbai and Nasik, had approached the consumer forum pleading them to direct the firms to pay back the promised amounts along with the compensation for the lapse. According to the complainants copy, the firms had promised the investors to pay huge amount of returns if the investors engage their money with the firm.
The consumer forum in its orders maintained, "According to the complainants, they had engaged their hard earned money and accordingly, had invested in the schemes, however, the company duped their money."
The forum after going through the complaint has issued a notice to the two directors and had asked them to file their replies, however, none of them responded to the notice. Hence, as the complaints were unchallenged, thus the forum ordered the two firms and their directors to pay an approximate amount of around Rs4.5 lakh to the complainants along with compensation of Rs8,000 towards the delay. The forum also directed the firms to pay an additional amount of Rs2,000 towards the complainant's litigation costs.

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