ED Attached CITY GROUPS Rs. 133 crores Assets in 4 Years

Enforcement Directorate attaches City Group's Rs 133-crore assets in 4 years

04/15/2014 | 11:47am US/Eastern

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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. CityRealcom, 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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