City Group Scam: Rs 400 cr that Masood fled with still untraced

THE ED HAS IDENTIFIED AND PROVISIONALLY ATTACHED MOVABLE AND IMMOVABLE PROPERTIES OF MASOOD WORTH R114.42 CRORE

MUMBAI: The Enforcement Directorate (ED) is trying to find the whereabouts of Rs400 crore that Sayed Mohammed Masood, chairman of the City Group of Companies, collected from 28,000 investors across five states, including Maharashtra, by allegedly promising them astronomical returns. Masood was arrested by the ED on Saturday, after he jumped bail in December 2011.

Floating schemes offering returns as high as 48%, Masood allegedly cheated investors across Maharashtra, Karnataka, Rajasthan, Andhra Pradesh and Delhi through his companies, City Limouzines (India) Ltd and City Realcom Ltd among others.

Seeking his 14-day custody, ED counsel Revati Mohite-Dere informed the designated Prevention of Money Laundering Act (PMLA) court on Saturday that Masood collected more than Rs500 crore from investors through his parent company City Limouzines (India) Limited and its subsidiaries.

She said the central agency has identified and provisionally attached movable and immovable properties worth Rs114.42 crore, including $12.36 lakh from Bank Credit Suisse, Zurich. Masood is suspected to have several accounts abroad in his and his companies’ names, she said.

Dere informed principal sessions judge Swapna Joshi that ED had issued him 32 summons since January 2010, but he did not appear before the agency even once.

Masood’s counsel Tushar Shah, on the other hand, pointed out that Masood was under arrest between February 2010 and December 2011 in connection with various offences, and recently the Supreme Court stayed an order of the Bombay high court which cancelled bail granted to him in a case registered with the Cuffe Parade police station.

He urged the designated judge to grant ED short custody in view of these circumstances.

Police authorities across the country, including the economic offences wing of the Mumbai police, are investigating Masood and his group of companies for cheating under section 420 and criminal conspiracy under section 120-B of Indian Penal Code.

Courtesy:
16 Dec 2012, Hindustan Times (Mumbai), HT Correspondent htmetro@hindustantimes.com
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City Limo scam: Group chief held

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
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