Sep 10, 2009 05:22 AM
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FIRM RENEGED ON ITS PROMISE Investment co seeks stay on cases of bounced cheques C Unnikrishnan| TNN Mumbai: City Limouzines(India) Ltd, which is being investigated by the police for cheating and the Enforcement Directorate for foreign exchange violations, urged the Bombay high court on Wednesday to stay cases of cheque bouncing registered against it.
The company’s advocate V K Maurya refused to disclose to TOI the details of its application before the court. Justice S J Kathawalla has kept the matter for hearing on September 16. The high court is also hearing two other applications by the firm’s sister concerns.
The company, which promised 48% returns, has run into trouble after the cheques it issued to its investors started bouncing. In some of the instances, the company has instructed the investors across the country not to deposit the cheques till further notice.
The economic offences wing of the city police is investigating a case of cheating on the complaint of one of the investors after the company reneged on one of its promises.
A group of investors turned up at the high court on Wednesday seeking details of the application filed by the company. One of the investors got into the witness box and apprised the judge of their worries. Justice Kathawalla said the court is not in a position to help as they were not party to the matter.
