Mumbai: Special PMLA Court Rejects Businessman's Discharge Plea In ₹12-Crore City Limousine Fraud Case

Mumbai: The special PMLA court has refused to discharge the plea of a businessman booked for aiding the accused in City Limousine fraud case in laundering funds to the tune of Rs12 crore in 2009.

About The Scam

The scam, which took place between 2007 and 2009, led to the Economic Offences Wing (EOW) filing cases against City Group companies – City Limousines, City Realcom, and City Hospitalities – for allegedly duping 70,000 investors with false promises of high returns and Limousines. Businessman Nitin Bohra was made an accused in the case for his link with M/s Khushi Industries Ltd.

The prosecution had alleged that the transfer of funds of Rs 7.25 crore, Rs 3.30 crore and Rs 1.45 crore was made by Khushi Industries to various accounts. Bohra had claimed that he was neither a director of the firm nor was connected to it at the time when the transaction took place. He claimed that he was inducted as a director of Khushi Industries on December 15, 2008 and was there till April 26, 2009.

The transaction took place between June 15 and August 18, 2009, that is post his resignation, he claimed. The plea was opposed by prosecutor Arvind Aghav on the ground that though the applicant has asserted that he resigned as a director of Khushi Industries, the same does not absolve him of liability for the fraudulent transactions.

The court relied on Bohra's statement wherein he claimed that he had given Rs 7.25 crore entry through his bank account to M/s City Limouzines, Rs 3.30 crore entry to M/s City Realcom and Rs 1.45 crore entry to M/s Andes Realty Consultants Pvt Ltd after receiving Rs 12 crore on commission basis at the rate of 5 paisa per Rs 100. The court said that the cash received by the accused for giving entries is proceeds of crime.