Ponzi scheme: ED attaches Rs 1.04 crore assets of Mumbai firm
The Enforcement Directorate (ED) has attached properties worth Rs 1.04 crore in connection with its money laundering probe against a Mumbai-based firm and its owner for allegedly running illegal chit fund schemes few years back.
New Delhi: The Enforcement Directorate (ED) has attached properties worth Rs 1.04 crore in connection with its money laundering probe against a Mumbai-based firm and its owner for allegedly running illegal chit fund schemes few years back.
An office premise in Mumbai and a flat in Pune have been attached under the provisions of Prevention of Money Laundering Act (PMLA) by agency's office in Mumbai, a statement from the agency said.
The total value of these two assets is Rs 1.04 crore, it said.
The case pertains to alleged contravention of money laundering laws by Sayed Mohammed Masood, chairman of a firm 'City Limousines' in Mumbai, whom the agency is probing for floating illegal ponzi (fraud investment) schemes by promising extraordinary returns to depositors which were not honoured.
The agency, in the same case, had earlier attached two Swiss accounts in the name of Masood and his business firms holding USD 1.25 million, under the same law.
An ED attachment ensures that these properties cannot be used by the accused and they cannot take any benefits from these assets and such an order can be challenged by the accused only at the adjudicating authority of the PMLA.
"By floating ponzi schemes offering astronomically high returns, Ms City Limousines (India) Limited, Ms City Realcom Limited, its Chairman and other directors of the companies have cheated thousands of investors across the country of funds to the tune of hundreds of crores," the agency had earlier said in its probe report against the firm.
ED enforces the PMLA in the country and is the lead agency to probe black money cases apart from the Income Tax department.