Wednesday, 27 July 2011

Red flag waved at speakasiaonline in Andhra Pradesh High Court

The online racketeer speakasiaonline suffered a severe set back on Monday after the Division Bench of the Andhra Pradesh High Court set aside the order of the single judge who issued a stay order in favour of the company.
The State Government preferred an appeal to the Division Bench stating that the fraudulent company had already transferred about Rs. 500 crore to Singapore and it is about to transfer as much amount soon.
It may be recalled Corporate Frauds Watch filed a criminal case against speakasiaonline and the CID of AP launched a massive investigation into the multi-billion rupee fraud.
However, the Division Bench allowed the petition of the company, Haren Ventures Pvt Ltd. The State Government had recently issued an order freezing the bank accounts of the company. Aggrieved by it, the company approached the High Court and a single judge bench granted stay on the order.The Government preferred an appeal against it before the Division Bench headed by the Chief Justice Nisar Ahmad Kakru.
The Advocate General, Mr A Sudarshan Reddy, presenting the facts before the Bench, said the company had a scheme of circulation e-magazine which was a veiled money circulation scheme and multi-level marketing which was banned under the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
He pointed out that the company had already transferred Rs. 500 crore and another Rs. 500 crore would be transferred to the Banks in Singapore if the order of the single judge was allowed to operate. 
Mr Reddy said that there were a number of cases registered in Vijayawada against the company and if the Bank account was not frozen the investigation would be hampered.
While allowing the appeal, the Bench set aside the order of the single judge and remanded the matter to the single judge with a direction to dispose of the case within two weeks.


GuyReviews said...

Too little, too late. Apparently SpeakAsia already took out well over 104 million USD out of its Indian accounts in the 2 weeks the injunction was in place.

GuyReviews said...

AND they have the temerity to produce a video to portray themselves as a game character playing chutes and ladders