2 held for City Limo-like racket | mumbai | Hindustan Times
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2 held for City Limo-like racket

The Economic Offences Wing (EOW) has arrested two men who allegedly duped thousands of investors of crores of rupees by floating an investment scheme like the City Limouzine scam.

mumbai Updated: Mar 25, 2010 01:15 IST
HT Correspondent

The Economic Offences Wing (EOW) has arrested two men who allegedly duped thousands of investors of crores of rupees by floating an investment scheme like the City Limouzine scam.

Pramod Raut and Sajid Warekar were arrested from Thane on Tuesday, said Additional Commissioner of Police, EOW, Sanjay Saxena.

On Wednesday, the court remanded them in police custody. Saxena said the duo had floated a scheme called M Limouzine wherein an investor was assured of monthly returns against the purchase of a vehicle, which was to be rented out by the company. After a certain period of time, the investor would get the vehicle on demand.

Raut and Warekar had set up their headquarters in Thane and had two offices in Mumbai.

When some investors did not get the returns as promised by the company, they approached the EOW and the duo was arrested. Their scheme was similar to the City Limouzine fraud which was pegged at more than Rs 2,500 crore till last week.

The EOW has received complaints from more than 60,000 investors.