Shine City promoter Rashid Naseem declared fugitive economic offender by Lucknow court

A Special Court (PMLA) in Lucknow declared Rashid Naseem, the main promoter of Shine City Group, as a Fugitive Economic Offender (FEO) on Wednesday, according to an Enforcement Directorate (ED) statement.

The ED had sought the declaration of Rashid Naseem as a FEO and filed an application in a special court for Prevention of Money Laundering Act in Lucknow, Uttar Pradesh. The ED had also sought confiscation of his properties under the Fugitive Economic Offenders Act, 2018.

What is the Shine City money laundering case?

In a chargesheet filed in October last year, the ED said that they had initiated an investigation based on approximately 554 FIRs registered by the Uttar Pradesh police against Naseem and Shine City Group of Companies, an HT report said.

The FIRs said that Naseem and the Shine City Group had collected approximately ₹1,000 crore from the public in the name of investment and promised a huge huge returns on them. That however, did not happen.

In July last year, Naseem's close aide Himanshu Kumar was arrested by the ED after probe revealed that Kumar had incorporated and controlled several companies such as Shraddha Saburi infra-Developers, Scapers Realcon Pvt Ltd, Bhavya Broadcasting Pvt Ltd, Realcon Links etc.

According to the HT report, the money collected from the customers was siphoned off to the entities owned, controlled and operated by Kumar.

What the probe revealed

The investigation led the ED officials to identify a money trail after which it provisionally attached properties worth ₹29.11 crore in the form of residential real estate project, office space and agricultural land belonging to Kumar and his companies in September, 2024.

Till date, five chargesheets have been filed and a total of eight individuals, 13 companies, and nine partnership firms have been accused in the money laundering case. The court has taken cognizant of all chargesheets filed so far, the report said.

The quantum of total attachment made so far in this case stands at ₹266.70 crore (approx.) The ED had also conducted raids at 18 locations and recovered digital evidence.

The probe also revealed that the fraud was carried out through Ponzi pyramid schemes disguised as real estate investments, a TOI report said. These schemes raised funds from investors, which were used to acquire movable and immovable assets under the name of Shine City companies, its directors, and associates.

Restitution for Shine City Group investors

Last year in December, the ED facilitated the restitution of funds of two investors of Shine City Infra Projects, a TOI report said.

A Special Court had directed the ED to refund ₹7.61 lakh to Husna Bano and ₹4 lakh to Neeta Verma, both of whom were investors in the Shine City Group.