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Multi-crore limousines scam: 3 govt officials held in Mumbai for cheating Bombay high court

The trio, who worked in the liquidator’s office, allegedly cooked up fake names of victims to claim refund

mumbai Updated: Feb 25, 2018 23:47 IST
Megha Sood
Megha Sood
Hindustan Times
Mumbai,Bombay high court,liquidator's office
The high court had appointed the liquidator’s office to make a list of investors who were duped by the two companies involved in the scam. (HT FILE)

The Azad Maidan police have arrested three government servants from the Government Liquidator’s Office on Sunday for allegedly cheating the high court by cooking up fake names of victims to claim refund in the multi-crore City Limousines and City Realcom Scam.

The arrested men have been identified as Keshav Satpute, additional divisional clerk and Gopal Bagul and Santosh Chavan, both working as peons. Officers from the Azad Maidan police station said they may arrest 26 more people, including Ramdas Yadav from Sangli district, who claimed to be victims in the two cases filed against M/s City Limousines (India) Ltd and M/s City Realcom India Ltd with the Economic Offences Wing (EOW) of the Mumbai police. The two City Group companies had allegedly duped over 70,000 people across the country by promising high returns on their investments. The EOW had then arrested seven persons, including Sayyed Masood, chairman of the company and seized properties worth nearly Rs200 crore. In December 2010, the high court had appointed the liquidator’s office to make a list of investors who were duped by the two companies and the money they had lost in the scam.

According to the police, in April 2017, the police had received a complaint from the liquidator’s office against the clerk and the peons for allegedly extorting a sum of Rs5.54 lakh from Yadav and 25 alleged investors over a period of two years from 2007 to 2009. The three government servants had allegedly extorted the money for preparing documents and affidavits to include the names of the 26 people as investors from 2013 instead of 2015. Yadav had written an email complaint to the liquidator’s office alleging that the peons and the clerk extorted money to make forged sanction letters required to claim the money, but most of them had not got those sanction letters, including Yadav.

“Based on the complaint of government liquidator Pankaj Shrivastav we had registered the complaint against the clerk and two peons including the 26 fake investors,” said Manoj Kumar Sharma, deputy commissioner of police (zone 1). The police said they arrested the three men on Sunday after collecting all the evidence against the trio. “We are going to make more arrests in the case based on further investigation,” said PS Vakhre, senior police inspector of Azad Maidan police station.

First Published: Feb 25, 2018 23:47 IST