ED calls Shine City fraud victims to claim seized properties
18 Nov 2024
2 Min Read
CW Team
The Directorate of Enforcement (ED), Lucknow Zonal Office, has taken a major step towards delivering justice to defrauded investors of Shine City Group. In a landmark move, Special Court (PMLA) Judge Rahul Prakash issued an order inviting victims to submit claims and validate their investments for property restoration.
The ED sought the intervention of the Allahabad High Court and the Special Court (PMLA), Lucknow, under Section 8(8) of the Prevention of Money Laundering Act (PMLA), to return attached or seized properties to victims of the Shine City fraud. Acting on this request, the court issued a public notice to facilitate the claims process.
The ED's investigation stemmed from over 550 FIRs filed by Uttar Pradesh Police against Rasheed Naseem and Shine City Group. It uncovered a Ponzi-pyramid scheme disguised as real estate investments, where funds were misappropriated to acquire properties in the names of companies, directors, and associates, depriving investors of promised returns or plots.
In its probe, the ED conducted raids at 18 locations, seizing digital evidence, incriminating documents, and property details. It attached assets worth Rs 2.63 billion and arrested eight individuals. Five Prosecution Complaints (PCs) have been filed against eight individuals, 13 companies, and nine partnership firms, all of which were acknowledged by the special court.
This initiative to restore properties to legitimate claimants represents a significant milestone in addressing the Shine City fraud, aiming to return the "Proceeds of Crime" to thousands of defrauded investors.
(ET)
The Directorate of Enforcement (ED), Lucknow Zonal Office, has taken a major step towards delivering justice to defrauded investors of Shine City Group. In a landmark move, Special Court (PMLA) Judge Rahul Prakash issued an order inviting victims to submit claims and validate their investments for property restoration.
The ED sought the intervention of the Allahabad High Court and the Special Court (PMLA), Lucknow, under Section 8(8) of the Prevention of Money Laundering Act (PMLA), to return attached or seized properties to victims of the Shine City fraud. Acting on this request, the court issued a public notice to facilitate the claims process.
The ED's investigation stemmed from over 550 FIRs filed by Uttar Pradesh Police against Rasheed Naseem and Shine City Group. It uncovered a Ponzi-pyramid scheme disguised as real estate investments, where funds were misappropriated to acquire properties in the names of companies, directors, and associates, depriving investors of promised returns or plots.
In its probe, the ED conducted raids at 18 locations, seizing digital evidence, incriminating documents, and property details. It attached assets worth Rs 2.63 billion and arrested eight individuals. Five Prosecution Complaints (PCs) have been filed against eight individuals, 13 companies, and nine partnership firms, all of which were acknowledged by the special court.
This initiative to restore properties to legitimate claimants represents a significant milestone in addressing the Shine City fraud, aiming to return the Proceeds of Crime to thousands of defrauded investors.
(ET)
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