Printed from Times of India
Now, investment co cheques into trouble
C Unnikrishnan, TNN 2 September 2009, 01:20am IST
MUMBAI: City Limouzine, which offered 48% returns to investors on their deposits, is in trouble after the interest cheques issued bounced due to lack of adequate funds.

The city-based company, already being investigated by the economic offences wing (EOW) on allegations of cheating and the Enforcement Directorate for alleged foreign exchange violations, has written to the investors not to deposit the cheques till September 5.

The letter says that a search was conducted by a central government agency on Citi Group (the group company) and its transactions are under scrutiny. A company official, who refused to be identified, told TOI that they have been asked not to carry out any transaction. He, however, refused to elaborate. But the investigating agencies said their probe is on but no specific instructions to stop the company from carrying out its business have been issued.

TOI has been reporting on the investigations and has received several emails from investors saying they were worried after the company's letter.

Following a recent Supreme Court order, the EOW has restarted its investigations on a complaint of cheating lodged by one of the investors. The Bombay high court had earlier quashed the FIR. On an investment of Rs 97,000, City Limouzine - promoted by Sayed Masood - promised a return of Rs 4,000 every month for five years. The amount collected by the company was to be used to purchase Maruti Omni cars, which were to be registered in the name of investors. Around 22,000 persons invested in the scheme in Mumbai, according to EOW.

One of the investors, Jalandhar Pansare, complained to the EOW, saying he was not handed over the vehicle as promised. According to EOW, the company has duped several hundred investors by not handing over the vehicle at the end of the agreed period. According to the police, this scheme is not financially viable.

unnikrishnan.chathrattil@timesgroup.com

I agree with all of those who have suggested that we (investors of citi group) provide our phone numbers to each other and get ready for taking legal action against the scam collectively.
Shailesh Patil
9819077535

Guys- lets not create any panic. Please go to google groups and type in city group. You will see an extensive discussion there.

we are again meeting their director in nariman point tomorrow.

Dear investors chennai office closed today
srini
9944744552

hi i am from hyderabad today i have gone to city limouzines they are saying that still to wait up to 15 of this month and they says that not to drop any cheque in the bank

Originally Posted by Unregistered

I will make appeal to all investors to provide your phone numbers to each other and get ready for taking legal action against the scam collectively. After ensuring that company is fraud.
Let us wait for 5th Sep 2009 and put up your cheques for clearing and see what happens?

Rajesh (9891085444).

Dats correct .........Get united to fight ..........

I went to there Bangalore office after receiving the SMS not to drop cheque untill 15th of Sept, but there office was closed. I am not sure why coz generally its on Sunday when they have lots of people meeting.

Any of the bangalore investors in the line.

HI every one today i visited city limousine office they told me to deposit the cheque on 7 sep but i got the message from city limousine on my cell that to deposit the cheque on 15 sep what they are doing im very worried what to do plz help any one have any info about the company plz tell me my cell no is 9867914380

BOMBAY HIGH COURT
CASE DETAILS
Bench:-Bombay
Lodging No.:- CAL/872/2009
Filing Date:- 21/08/2009
Petitioner:- CITY LIMOUZINES (I) LTD. -
Adv.:- VN-ASSOCIATES
District:- BOMBAY
Bench:- SINGLE
Status:- Pre-Admission
Category:- COMPANY APPLN. U/SEC 391 to 394 COMPANIES ACT
Next Date:- 09/09/2009
Stage:- SUMMONS FOR DIRECTION
Coram:- HON’BLE SHRI JUSTICE S. J. KATHAWALLA
Last Date:- 04/09/2009
Stage:- SUMMONS FOR DIRECTION
Last Coram:- HON’BLE SHRI JUSTICE S. J. KATHAWALLA
Act :- COMPANIES ACT & RULES 1956 --
Court orders (also attached to this email)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
COMPANY APPLICATION (L) NO.871 OF 2009 .
City Realcom Ltd. ..Applicant.
WITH
COMPANY APPLICATION (L) NO.872 OF 2009 .
City Limouzines (India) Ltd. ..Applicant.
....
Mr. Simil Purohit, i/b. VN Associates, for Applicant, in both
Applications.
....
CORAM : S.J.KATHAWALLA, J.
DATE : 29TH AUGUST 2009.
P.C.
Not on Board. Taken on Board.
2. The applicants are seeking urgent adinterim reliefs in terms of prayer clause (b) which reads thus :“
that pending the hearing and final disposal of the company petition, all proceedings, civil and criminal arising out of
the dues of the class A and class B creditors including but not limited to the proceedings under the Negotiable Instruments Act be stayed against the applicant company and its Director/s.”.
3. The Company Registrar has submitted a list of 27objections which the applicants are required to comply, after which
both the applications will be numbered.
4. The applicants shall remove the said objections and only thereafter move this Court for urgent reliefs. In view thereof, no
orders are passed in the company applications.
[ S.J.KATHAWALLA, J. ]

____

hi every one this is junaid i have also invested in the co one of my friend from rajastan is saying that company is going to shut down hurry up contact the company im now going to their office if i found anything suspicious i will call the media

Hi guys,
I am also in the same boat and wish to tell that I received a message from city limousines that they are sorting out the problem and they have again advised not to deposit the cheques before 15th of September.
Now this proves only one of two things:

1. Either they are buying time by calming the investors that there was some problem and they are trying to rectify that - before they flee away.
OR
2. tHEY ARE REALLY SERIOUS ABOUT PAYING THE NVESTORS.

I feel the first statement is correct but on the other hand these guys have displayed the Income Tax notivce that they have received as well as have displayed the advertisements that they have place din three newspapers to tell investors about the problem and requesting them not to deposit any cheque.

Other rumours that I have heard are some senior management officials have deliberately done something mischevious for which the compalny has suffered loss but there is no end to discussing such things.

I will post any other information I will get as I am going to their office today.

It is encouraged that we all assemble at their office in our respective cities today or tommorow and let us all write what we heard and observed.

A quick and timely action may help us from loosing our hard earned money.

I hope things to turn out positive.

Hi, I am also an investor in City limouzines, none of the cheques till last month has bounced, and I am investor since 2 years now.
What I request all the investors is if we file a case against them, again the bank transactions will be blocked and seized until the judgement is announced, from previous msg, what I see is they are asking for a stay order, so that these things get cleared.

if they were fraud, they wouldnt have called up everybody or remained open, answering queries.

The main reason for this problem is some person who had mentioned that he wanted the car back didnt accept money instead of car, and he had got his money for 5 years without a single cheque bounce, because of pure EGO issues, he has filed a case, and all of us are in trouble now..

so i think if we file case, we all will be in loss, lets wait for 15th, I know how important that moeny is for all of us, cos all of us would have committed montly for that income what we get through city limouzines, and I am one of them, where I have to pay all my EMIs with that money, so lets trust for once, and dont take any action until we find it fraud.

Originally Posted by Unregistered

Hi, I am also an investor in City limouzines, none of the cheques till last month has bounced, and I am investor since 2 years now.
What I request all the investors is if we file a case against them, again the bank transactions will be blocked and seized until the judgement is announced, from previous msg, what I see is they are asking for a stay order, so that these things get cleared.

if they were fraud, they wouldnt have called up everybody or remained open, answering queries.

The main reason for this problem is some person who had mentioned that he wanted the car back didnt accept money instead of car, and he had got his money for 5 years without a single cheque bounce, because of pure EGO issues, he has filed a case, and all of us are in trouble now..

so i think if we file case, we all will be in loss, lets wait for 15th, I know how important that moeny is for all of us, cos all of us would have committed montly for that income what we get through city limouzines, and I am one of them, where I have to pay all my EMIs with that money, so lets trust for once, and dont take any action until we find it fraud.

Hello,

Can you please provide the details of the case.

Chennai office closed. Lot of people waiting outside the building.... lot of discussions .... police .. media persons.

Dear investors,

You are all curious to know about what mishapenning happened with us. So I am giving you the link of Supreme court judgement where you can download and read the order of supreme court dated 4 aug 2009. just type
http
then ://
then judis.nic.in
then /supremecourt
then /helddis3
then.aspx.

I will welcome some authorised officer of City Limouzines who can tell us the right story behind this (with proof). He must show his identity first. If city limouzines is realy wants to stop the panic among us (investors). some body should come forward and take all of us in the confidence.....

yours

Rajesh....