Mumbai, March 25: The officers of the Economic Offences Wing (EOW) of the Mumbai Crime Branch have arrested two directors of a car rental company, unearthing a Rs28-crore fraud. The company was running a Ponzi scheme similar to that of the tainted City Limouzine group.
The arrested — Pramod Gangaram Raut, 39, and Sajid Ibrahim Warekar, 33 — are directors of M Limouzine India Ltd, with offices at NC Kelkar Marg in Dadar and one at Ram Maruti Road in Thane.
“The company had placed advertisements in newspapers promising to purchase a car in the names of the investors, and a monthly return of Rs25,000 from the income generated by renting the luxury car,” said an EOW officer.
The officer said the company had 10 branches. Investors from Chennai, Mysore, Pune and Goa have also been cheated. “Initially, the company paid the promised returns, but since August last year, it downed its shutters. At least 1,200 investors have been duped to the tune of Rs16 crore in Mumbai, while around 900 people from other parts of the country have been cheated to the tune of Rs12 crore,” he said. The police are now on the lookout for another director, Amol Dhagde.
—Agencies