Lucknow, June 19 The Directorate of Enforcement (ED), Lucknow Zonal Office, has filed a Prosecution Complaint (PC) before the Special Court (PMLA) in the money laundering case of Shine City fraud.
This is the second prosecution complaint filed by ED in the matter.
ED initiated an investigation based on approximately 554 FIRs registered by Uttar Pradesh Police against Rasheed Naseem and Shine City Group of Companies.
The investigation revealed that the accused persons, associates and promoters incorporated several companies and collected funds from the public in a Ponzi pyramid scheme under the guise of investment in the real estate sector and other attractive schemes and thereafter diverted the funds.
The ED investigation identified the fund trail and found that money collected from the customers was diverted and transferred to various directors/promoters/associates and Group companies under the guise of commission/royalty amount.
The funds diverted were utilized for the purchase of property.
The investigation till now has identified such properties worth Rs 28 crore and the ED has attached them under the provisions of PMLA. The role of Directors and companies controlled by them in money laundering has been established, according to an official release of the ED.
Previously, ED had conducted searches under the provisions of the PMLA, 2002 at 18 locations in Lucknow, Varanasi, Allahabad, Mumbai, and Delhi.
Search operations resulted in the recovery and seizure of several digital devices and incriminating documents regarding the continuous involvement of some persons in the act of money laundering.
The ED had arrested and conducted custodial interrogation of seven accused persons, namely Shashi Bala, Abhishek Singh, Durga Prasad, Udhav Singh, Ashif Naseem, Amitabh Srivastava and Meera Srivastava. The custodial interrogation revealed their involvement in the offence of money laundering.
The ED has now filed a Prosecution Complaint against Asif Naseem, Rashid Naseem, Amitabh Kumar Srivastava, Meera Srivastava and 11 Shine City Group companies.
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