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-bynight 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 was 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.
Courtesy:
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/16&PageLabel=4&EntityId=Ar00403&ViewMode=HTML
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-bynight 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 was 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.
Courtesy:
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/16&PageLabel=4&EntityId=Ar00403&ViewMode=HTML
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