Saturday, March 10, 2012

Letter send to Mrs Sonia Gandhi and others on City Limouzines Fraud


Respected Madam,
I write to you on behalf of a strong community of around 500,000 citizens of India. I draw your attention to our plight and agony since August 2009. We are unfortunate victims of mega financial fraud executed by City Group Ltd. and its group concerns ( www . cit y lim ou z i n e s . c o m ).
Background:
City Group Ltd. is an ISO 9001-2000 (claimed to be established in 1995) certified private company based in Mumbai with branches in major Indian cities (New Delhi, Bangalore, Hyderabad, Chennai, Pune and Jaipur) and the USA. This company is headed by Mr Syed Masood and accepts investments in cheque and cash from general public. The company was in this business under 14 different subsidiary companies. As per the agreement signed between each of the subsidiary company and individual investors, the investor is guaranteed a monthly return for a fixed period. On
completion of the tenure, the investor is refunded either a partial amount from the investment he / she made or a vehicle as written in the agreement. The company issued receipts for the investment made. T o make the deal look authentic, the company also issued Preference Share Certificates towards a partial amount of the investment. The company has been in this business since 1996. The trouble started in August 2009 when cheques started bouncing. The company began giving false reasons like internal audit to prolong the matter. To our shock the company abruptly shut down all its offices and branches in India without any communication. Instead of coming open in the public and explaining the correct situation, the employees and directors of this company kept postponing the dates of re-opening the branches.
Impact:

It was only the high amount of returns advertised and promised by the different schemes of this group that led investors to believe its claims and invest in its schemes. There are many senior government officials, reputed political leaders, retired armed personnel who fell prey to the advertisements and invested in the schemes promoted by the group. Our plight is different from these investors. We are sma l l investors and are adversely affected to a large extent because our
hard-earned money is at stake. There are many investors who have no other option but to end their life because of this scam. Please note that there are retired people, ladies, widows etc. who invested their entire savings accumulated over their life and now have nowhere to go.

As a matter of fact, the group’s New Delhi office inaugurated by the Delhi Transport Minister Mr. Haroon Yusuf. (The Hindu dated 25.11.05). It also displays a “Letter of Recommendation” written by a Congress cabinet minister viz. Mr Subodh Kant Sahay favouring the group’s tainted chairman Mr. Masood. In addition, the Company was appointed as sponsors to the Indian Women Hockey Federation till 2010 and pledged to give a stipend of Rs. 1 crore & Rs.5 lakhs towards development of the game. This was announced by Mr. Masood in a glittering function held at hotel Shangri-La, New Delhi in 2006 (Source: Times Now dated 29.6.06) 

Current Situation & Way Forward:
The estimated corpus of our investments today stands at Rs.15,000 crores with this group under various schemes advertised in the print media on a continuous basis. Majority of us have taken personal loans or sold off assets in order to invest in this company. All the investors of this company are going through a very painful time since this unfortunate event in August 2009. The chairman of this group Mr. Masood has refrained from communicating with the investors and all efforts undertaken towards this from our side have not been fruitful. As on date different agencies like ED and EOW are investigating the matters. Mr. Masood and his wife are being represented by Mr. Abhishek Singhvi, Congress spokesperson, who is also a MP representing Rajasthan in the Rajya Sabha. Mr. Masood is presently in police custody. We are unaware how long the investigations will continue. We are dependent on the public prosecutors and the various government agencies to punish the guilty and deliver justice. We earnestly request you to kindly look into this matter at
the earliest and bail us out from this situation. We also request you to direct the concerned agencies to speed up the probe and resolve this scam as a priority. We look forward to you with trust as our only hope.


Regards & Thanks

All India City Limouzines Investors

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