New Delhi [India], December 22 : The Enforcement Directorate has arrested one more person, associated with Shine City's owner, Rasheed Naseem, for duping investors through fraudulent investment schemes.
The arrest was made after a series of raids conducted by the ED.
According to the official statement by the central agency, they arrested Udhaw Singh, alias Sonu Singh, on December 21 from Lucknow in connection with an ongoing investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a money laundering case of Shine City Fraud.
ED initiated an investigation on the basis of approximately 250 FIRs registered by Uttar Pradesh Police against Rasheed Naseem and Shine City Group of Companies, wherein they had collected a huge amount of money, approximately Rs 800-1000 crore from the public in the name of investment, promised huge returns and finally cheated the public by way of committing fraud.
The ED investigation revealed Udhaw Singh had received a huge sum of money in the name of bogus commissions and advances for land purchases from the Shine City group of companies, which was diverted to acquire assets in the form of flats, commercial spaces, etc. in various places such as Mumbai, Gujarat, and Uttar Pradesh.
The ED investigation till now has resulted in attachment of properties worth Rs 128 crore and collection of incriminating documents and electronic evidence during the search action conducted on November 24 at 18 premises linked to the accused and close associates of mastermind Rasheed Naseem.
The main accused, Rasheed Naseem, is absconding and is suspected to have fled to UAE.
Udhaw Singh was produced before the Special Judge (SPE / CBI) (Special Court for PMLA Cases), Lucknow, on December 22, where he was granted ED custody for 10 days.
This is the fourth arrest in this case. Earlier, the ED had arrested Shashi Bala, Abhishek Singh and Durga Prasad.
Further investigation is in progress.
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