HC spares firm from criminal proceedings

City Limouzines (India) Ltd, a Cuffe Parade-based firm, which had been accused of defrauding people by luring them into making investments against the promise of a car, has been spared criminal proceedings by the Bombay High Court. The court, earlier this week, quashed the FIR lodged against the company as a case of cheating was not made out against the company.

Jalandhar Phansare, an investor, had filed a criminal complaint against the company at the Cuffe Parade police station last year. The Economic Offenses Wing later took over the investigation of the case. According to the scheme formulated by the company, investors would pay Rs97,907 and a Maruti Omni would be purchased under their names.

However, the vehicles would be handed over to the investors only after five years. The company would pay them a fixed sum of Rs4,000 every month as the vehicle would be rented out by City Limouzines until the five-year period was up.

Phansare had alleged that the company did not hand over the vehicle to him even after five years of him making the investment. Associate advocate general Ashutosh Kumbhakoni told the court that a number of investors had been duped similarly by the company.

Senior counsel for City Limouzines, KTS Tulsi, however, said the complainant had not disputed the receipt of Rs4,000 every month from the company as was agreed upon five years back. By virtue of that, Tulsi said, the complainant had already earned Rs2.4 lakh over his initial investment.