Sayed Mohammad Masood, a businessman who allegedly promised astronomical returns of 48% in deposits and investments in his companies and cheated over 28,000 investors, was arrested by the Enforcement Directorate (ED) on Saturday - after a year-long manhunt.
Around 42,000 cheques issued to investors by firms belonging to Masood, who heads City Limouzines (India), had bounced in August 2009.
ED's Delhi unit traced him to Gurgaon, after which he was produced before the additional chief metropolitan magistrate at his house around 10 pm on Friday. The judge allowed his transit remand to Mumbai, after which the ED in that city produced him before designated PMLA judge Swapna Joshi on Saturday. He was remanded in ED's custody till December 21.
Masood is under the ED scanner for allegedly laundering money within the country and abroad. The agency had recently attached two Swiss bank accounts belonging to Masood and his company. Recently, it had also issued 15 orders mandating the attachment of movable and immovable properties across India, with a market value of around Rs 115 crore, in the names of Masood's family members and company officials. Now, the ED wants to find out where he had stashed around Rs 400 crore collected from investors across five states.
His counsel Tushar Shah urged the judge to grant ED short custody taking into cognisance fact that Masood had been under arrest between February 2010 and December 2011.