DNA News Paper dated 16/12/2012
Bizman arrested for cheating investors
The chairman of City Limouzines, Sayed Masood was on Saturday remanded in the custody of Enforcement Directorate (ED) till December 21. Masood, accused of duping thousands of people who had invested money in his firms like City Limouzines and City Realcom, was arrested by ED in Delhi on Friday and produced in the special Prevention of Money Laundering Act court on Saturday.
The ED told the court that it has so far attached properties worth Rs115 crore in Masood’s name while properties worth about Rs400 crore was yet to be identified. Besides, the accused held several overseas accounts. “He needs to be interrogated about people who helped him in his money laundering,” said ED in the remand application. The ED also told the court that Masood was summoned 32 times to record his statement but he failed to appear. Masood’s lawyer TV Shah, however, argued that his statement was already recorded by the ED.
Masood has been remanded under the Prevention of Money-Laundering Act.
Times of India dated 16/12/2012
ED arrests City Limouzines chief for fraud.
MUMBAI: The enforcement
directorate (ED) on Friday arrested Sayed Mohammed Masood, chairman of tainted
investment company City
Group, which duped thousands of investors across the country by promising
48% returns on their investments.
Masood was arrested in Delhi. On Saturday, he was produced
before special judge Swapna Joshi in Mumbai and remanded in ED custody till December
21.
Masood's companies City Limouzines
and City Realcom had floated various schemes. After collecting around Rs 1,000
crore from investors by promising them unrealistic returns, the companies shut
operations. In 2009, more than 42,000 cheques issued by the above companies to
the investors were dishonoured. More than 20 FIRs have been registered against
the companies in Mumbai, Maharashtra, Karnataka, Rajasthan, Andhra
Pradesh and Delhi for criminal conspiracy, breach of trust and
cheating.
The ED had initiated
investigations under the Prevention of Money
Laundering Act as Masood was found to have invested the proceeds of
the crime abroad and in India. The PMLA allows the agency to seize properties
purchased using tainted money. "The government takes over the properties
and then it is for the courts to decide whether the properties should go to the
government or be auctioned and the money distributed to investors," an ED
official said.
ED officials said the PMLA will act as an effective deterrent
against such fly-by-night companies.
The ED had conducted extensive
investigations and found that Masood maintained bank accounts in Switzerland in
his name and in the name of his companies. In October, the ED attached the
Swiss bank accounts of Masood and other group companies. This is the first such
move under the PMLA.
The ED has so far issued 14 orders attaching movable and
immovable properties in India with a market value of over Rs 130 crore in the
names of City Group, Masood, wife Chand Masood Sayed, daughter Jabeen Masood
Sayed, minor son Jibran Masood Sayed and other directors. The PMLA adjudicating
authority has confirmed all the attachment orders and the ED is in the process
of taking over these properties.
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