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Commented on Mazher26's review

Hi Investors think and Act soon
City Limouzines

“There is no regulatory body for direct selling (MLM) in our country as of now, and so we have been coordinating with relevant authorities in the government to unearth scams operating under the guise of MLM. We have a list of such companies operating all over India that is updated on a weekly basis ...and were surprised to learn that 10-20 new ones were being added every month,” he adds. The modus operandi of such companies is the same each time. The initial set of investors are paid the high returns they were assured. Word gets around, and more investors hop on to the bandwagon. Money received from new investors is used to pay the earlier set of investors. Once the promoters of the firm have collected enough money, or observe that fresh inflows are insufficient to meet prior commitments, they decamp. All these investment plans need a technology vendor who can provide the software to manage the database of investors, deposits, calculations and payouts. Usually, this software is designed by a handful of firms which are fully aware that the business model is a scam. “Investors should not invest in high-return, short-period schemes launched by people whose integrity is in doubt,” says Mr Saxena. But it’s not yet clear whether he and his team in the EOW will be able to salvage the funds that these companies have walked away with. For investors, who are paying the price for ignorance, it could be a long wait. Read More

Commented on Mazher26's review

Hi Investors think and Act soon
City Limouzines

On its part, RBI has stepped up vigilance against firms offering unrealistically high returns. The central bank has been convening meetings with banks, drawing their attention to the fact that MLM companies are opening accounts in various banks, mostly private ones, for collecting deposits from the ...public with promises of exorbitant returns. Often, these accounts are opened without complying with Know Your Customer (KYC) norms and overruling provisions of the Anti-Money Laundering Act. Some of the companies the banking regulator has named include Fine India, Alaska India, Trident Advertising and Travelink, Superlite Linked Distributors, Luebrial Education, Many Mantra Marketing, Laxya Levels Marketing, Star Consultancy and Seashore Funds. RBI has cautioned banks to report to it about any unusual/heavy transactions in newly-opened bank accounts that appear suspicious. It is also freezing the accounts of companies with cash deposits from various locations where the amount exceeds Rs 50 lakh in a month. According to people familiar with such concerns, the firms manage to raise Rs 15-20 crore every month and the size of the industry runs into several thousand of crores in Mumbai alone. “These companies use MLM compensation schemes. Unsuspecting investors/depositors fall prey to such schemes, lured by the high returns they offer,” says Daniel R Pranjal, who heads Strategy India, an MLM consultancy firm in India. Read More

Commented on Mazher26's review

Hi Investors think and Act soon
City Limouzines

At least three dozen such firms are said to be operational in Mumbai alone. The schemes, known as growth, investment, or non-working plans, use the multi-level marketing (MLM) route to fly below the radar of regulatory bodies.. For instance, since these firms do not technically collect deposits, the...y are not regulated by RBI. For instance, with Shree Om Sainath you can place an order for a brand new Tata Indica for just Rs 1.25 lakh. You will get your car only after five years, but till then the company will pay you Rs 3,435 per month. So, the payment of Rs 1.25 lakh is not a deposit, but an investment. For a deposit of Rs 1.39 lakh, City Group, which has a dozen or so businesses, City Limouzines, City Realcom and City Hospitalities, and so on, will give you Rs 8,800 every month for the next five years. Metro Cruise’s retail plan promises an even higher return: Invest Rs 1.05 lakh and collect Rs 12,517 every month for five years. Then there is the ‘pay-per-click’ scam, where an investor has to pay Rs 1,500-2,500 for enrolling with an online firm. The firm will send links of around 10 advertisements to the investor everyday, promising him Rs 5-7 for clicking on each of those links. But some of these firms have run into trouble, and chances are that before long others will too, as investors rush to redeem their deposits. One such company, City Limouzines, defaulted on its payments to depositors last month, and the Mumbai-based Economic Offences Wing (EOW) is learnt to be looking into a few companies operating on similar lines. “EOW is coordinating with other bodies like RBI to seek their help on the matter. We are keeping a close watch on new schemes that are launched,” says Sanjay Saxena, additional commissioner of police, EOW. Read More

Commented on Mazher26's review

Hi Investors think and Act soon
City Limouzines

PONZIS ARE BACK (economic times) Get rich quick’ schemes are thriving, as dubious investment firms continue to run Ponzi schemes with impunity, taking care to ensure that they do not fall under the purview of any regulatory body, reports Apurv Gupta ON 12/10/2009 MONDAY morning a motley crowd ga...thered outside the city sessions court awaiting the outcome of an anticipatory bail application. The man who sought bail was the promoter of a company that had attracted investments from a multitude across the country by promising fancy returns. The crowd outside the courtroom was anxious to find out what happened next. After the judge granted the promoter a week-long bail — an interim protection — the investors, some of whom had come from distant cities, hired a cab to meet a senior official of the Mumbai police. “We don’t know how to recover our investments... we hope the police does something,” said a lady who was part of the crowd. Driven by police complaints, the media glare and a separate set of allegations related to alleged violation of foreign currency rules, the company will soon hold meetings with investors, some of whom have given up hope. It’s a re-run of the ‘get rich quick’ schemes floated by dubious investment companies in the 1990s, promising fantastic returns in a short period to gullible investors, only to leave them high and dry later. Amazingly, such schemes still continue to find takers even today. More than 12 years after the Reserve Bank of India (RBI) tightened norms for nonbanking finance companies (NBFCs) in the wake of the scam involving the high-profile CRB Group, many ‘investment firms’ continue to run Ponzi schemes with impunity, taking care to ensure that they do not fall under the purview of any regulatory body. Ponzi schemes, named after American swindler Charles Ponzi, give returns to investors from money taken from other investors.. At some point, the chain snaps when fresh money stops coming in, and the scam is exposed. Read More

Commented on own review

Masood has given some hopes thru his interview
City Limouzines

Sessions court grants interim relief to City Limo chief C Unnikrishnan, TNN 9 October 2009, 02:39am IST Print Email Discuss Bookmark/Share Save Comment Text Size: | MUMBAI: S M Masood, chairman of City Limouzines who is accused of cheating investor, has moved the sessions court for anticipato...ry bail. Police in Mumbai, Chennai and Hyderabad are conducting investigations in the case. The sessions court on Thursday posted the matter for hearing to October 12 and granted interim protection from Masood being arrested. A police team from Chennai was also in the city as part of the investigations. Masood moved the court, fearing arrest by the economic offences wing (EOW) of the city police after fresh complaints were lodged against him. Till August, when cheques issued by the company began bouncing, the firm was being investigated only for a lone complaint lodged by investor Jalandar Pandhare in 2007. EOW has opposed the anticipatory bail plea, saying there have been several complaints and sought his custody. The sessions court granted interim relief to Masood, saying he will not be arrested in Mumbai till OctoberRead More

Commented on own review

Masood has given some hopes thru his interview
City Limouzines

REMEMBER AS PER MY AGREEMENT OF YR 2005, IT IS ONLY A RENTAL INCOME ON CAR LEASING . NEITHER PRINCIPLE OR INTT ELEMENT INVOLVED. THE PRESENT SCHEME OF ARRANGEMET IS DRAFTED IN SUCH A MANNER GUYS LIKE ME ARE BROUGHT UNDER PRINCIPLE AND INTT PAYOUT. THIS WHAT I FELL - PICK THE PEANUTS.

Commented on own review

Masood has given some hopes thru his interview
City Limouzines

copied from hi,hope started receiving scheme of arrangement + proxy forms.i am an investor in city limou. of 2006 and received 45 cheques so far. prior to the receipt of the said form i felt that i have received my principle, (45*6000=270000/-) ,and balance is my pref.share of rs.70000/- and so i... am pref.share holder and comes under class 'B'.but i got form as class 'A' creditors. how is it. here is the study first upall i am unsecured creditor Class 'A'- as per the new arrangement. .1. as per the proposed scheme of arrangement -part B- s.no.3, the amt received- pref. share i.e my case 150667-70000=80667 is my balance principle amt. 2. then who will be class'B' under the present arrangement. ans: those who has received full 60 cheques and waiting for encashment for pref share.and he has received his full principle amt of rs.80667/- 3. then what is balance principle amt in my case who received 40 cheques with a principle inv. of 80667/- 4. it is 80667/60*15( balance period )=20166.75. this is the balanceprinciple amt for remaining 20 months. 5.then divide this 20166.75/15=1344/- this amt will be the diminishing principle per month 6. cal culate in excel by putting 20166.75 as the first( !5th) principle amt and reduce 1344/ per month and go downupto ist month.u will get the diminishing principle for 15 remaining period. the cal int @ 7% for 15 months with excel help. y will get intt of rs.941.39 for entire 15 months.the add 20166.75+941.39=21108.14. this is total repaybable amt under new scheme of arrangement. 7. the 21108.14/12( TEWLVE inst as per arrangement) will give an EMI of 1759.01. 8. at the end of 12 months , all ur principle will be paid and will left with pref share of 70000/ anf y will be CLASS 'B' creditors. 9. over all pay out 12 emis +perf share will be 21108.14+70000= 91108.14 hi, friends , this what i infer from the scheme . any comments and clarification pl welcome. Read More

Reviewed City Limouzines

Masood has given some hopes thru his interview

Masood has given some hopes thru his interview published in DNA ( Mumbai Edition) MUMBAI TOP NEWS Monday, October 5, 2009 Somendra Sharma In the midst of a row over allegedly cheating several thousand investors to the tune of crores of rupees, City Limouzine chairman Sayed M...Read more

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