Police should create machinery to prevent investor scams: HC | india | Hindustan Times
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Police should create machinery to prevent investor scams: HC

india Updated: Jul 20, 2011 01:34 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The police should create machinery to prevent the repetition of scams such as CU Marketing and City Limouzine, which attract investors by presenting them with a rosy picture and ultimately dupe them of their hard-earned money, the Bombay high court said last week.

The division bench of justice Ranjana Desai and justice RV More was hearing a public interest litigation (PIL) filed by Rajmani Shukla apprehending one more scam involving a Singapore-based company, Speak Asia.

“Having perused the petition, we feel that another scam is in the offing,” the judges noted in their July 13 order on the PIL.

In the filed through advocate Vinod Chate, the 60-year-old Andheri resident has sought prompt action alleging that the company had collected crores of rupees from investors through an online business.

The petitioner alleged that the company has closed operations recently saying they were unable to operate their bank accounts because of action initiated by banking authorities in Singapore.

According to the PIL, Shukla himself had tried to approach police authorities after he came to know about the purported scam, but the police authorities expressed helplessness saying they could not take action on the basis of his complaint as he was not a duped investor.

He then filed the PIL saying the delay would hamper the investigation and recovery of money invested by lakhs of people. Shukla’s allegations have been fortified by a report submitted by the Economic Offences Wing (EOW) of Mumbai police. Rajvardhan, additional commissioner of police, in-charge o