PMLA Adjudicating Authority Held attachment of City Limouzines Rs 7.2 crore Swiss accounts Valid

Limo chief's Swiss a/c sealed

Published: Wednesday, Feb 27, 2013, 9:00 IST
By DNA Correspondent | Place: Mumbai | Agency: DNA

The Enforcement Directorate has for the first time ever managed to seal Swiss bank accounts of Sayyed Masood in the City Limouzines money laundering case.
The move is being viewed as a shot in the arm for Indian security agencies attempting to liaise with foreign agencies on alleged stashes of black money.
The step was taken under the stringent Prevention of Money Laundering Act (PMLA).
The ED, through an order of the special PMLA court, sealed bank accounts belonging to Masood. According to sources, more than Rs108 crore are believed to be stashed in these accounts.
Investigations by ED are said to have uncovered a huge money laundering scam allegedly masterminded by Masood. According to ED officials, Masood maintained bank accounts in Switzerland in his as well as his companies’ names. These accounts have now been attached by the ED. More domestic and international attachments are likely in the days to come.
According to the ED, Masood had floated Ponzi schemes offering astronomically high returns. Through his companies, namely City Limouzines India and City Realcom Limited, he allegedly cheated thousands of investors across the country to the tune of hundreds of crores of rupees. So far in its investigations, the ED has attached as many as 16 movable and immovable properties in India worth more than Rs200 crore belonging to Masood, his associates and his family members.
ED arrested Masood in December 2012. His bail was rejected by the Bombay high court in February 2012 and he is in judicial custody. ED had filed a prosecution complaint against him and others before the special PMLA court in February 2012 for laundering of proceeds of crime amounting to Rs108 crore (approx).

Meanwhile, months after the ED attached the Swiss bank accounts of City Limouzine group chairman Sayed Masood for allegedly duping investors through his companies, the adjudicating authority under the PMLA has upheld the ED's action.

"The order passed on Tuesday by the adjudicating authority under the Prevention of Money Laundering Act has upheld the ED's attachment and cleared the decks for the ED to approach the Swiss government for possession and taking over of these bank accounts," sources in the ED said.

The ED is investigating the City Group and its chairman Masood, who allegedly indulged in money laundering by floating ponzi schemes offering astronomically high returns and cheated thousands of investors across the country.

In October 2012, the directorate had issued 16 orders to attach movable and immovable properties in India with a market value of over Rs 200 crore in the names of City Group of companies, Masood, his associates as well as family members.

Investigations by ED revealed that Masood maintained bank accounts in Switzerland in his name and in the name of his companies. The directorate had attached these bank accounts with a balance of $1.25 million.

The ED had arrested Masood last December and a charge sheet was recently filed against him.

"This is the first time that bank accounts in Switzerland have been attached by the ED under the PMLA. This important development is likely to have far-reaching impact as it will give a boost to international investigations being conducted by the ED under PMLA," sources said.

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On Friday, March 1, 2013 9:26:49 AM UTC+5:30, Sandeep Upadhyay wrote:

MUMBAI: The Enforcement Directorate's order attaching Rs 7.2 crore in the Swiss bank accounts of tainted investment firm City Limouzine has been upheld by the adjudicating authority appointed under the Prevention of Money Laundering Act (PMLA).

This means the ED could approach the Swiss government for taking over these bank accounts, said officials. This is the first time that Swiss bank accounts have been attached by the ED under the PMLA.

TOI had reported about the ED attaching the Swiss bank accounts on October 8.

The ED is investigating the City Group and its chairman S M Masood for money laundering. The group companies , City Limouzines and City Realcom, had collected more than Rs 1,000 crore from the public offering 48% returns, but defaulted in 2007.

The police across the country have registered cases against Masood and other directors.

The ED found that 30% of public money was accepted in cash and diverted for Masood's personal use. The ED said he has bought properties, including land worth Rs 108 crore.

Investigations showed the funds were layered and placed through a network of firms and trusts registered abroad and having bank accounts in various countries. Masood created a maze of legal structures and transactions to hide the true source of funds, the ED said.

He also routed unaccounted cash into the financial system by showing the same as loans received from diamond traders and sharebrokers. In fact, he paid them cash and it was re-routed as loans, the ED said. "Through these loans Masood has integrated the unaccounted proceeds of crime into the financial system with intention to further launder it to acquire properties," an ED official said.


My personal Opinion:
Dear concerned 
City Limouzines  / City Realcom Investors Those who have not submit their claims to official liquidator Attached to High court of Bombay, Submit your claims in My opinion. Money sufficient has been attached by authorities. though It will take time.It is my personal view rest it is your money. You claim or not claim it is your choice.