Lucknow, May 1 Acting against the mastermind of a multi-crore rupee ponzi scheme, Special PMLA Court here declared Rashid Naseem - the main promoter of Shine City Group - as a Fugitive Economic Offender, an official said on Thursday.
The ED has filed four prosecution complaints in this case and provisionally attached properties amounting to Rs 127.98 crore, which have been identified as proceeds of crime.
Based on the investigation, the ED identified the key accused and associated entities involved in laundering the illicitly collected funds.
During the investigation, it was revealed that Rashid Naseem failed to appear for questioning despite the issuance of a summons and ultimately fled India via Nepal and is currently residing in Dubai, UAE.
Despite issuance of a Non-Bailable Warrant, Look Out Circular, and a Red Notice by Interpol, Rashid Naseem refused to return to India to face the criminal proceedings, said a statement.
Accordingly, the ED filed an application seeking his declaration as a Fugitive Economic Offender under FEOA, 2018.
Last November, defrauded Shine City Group investors received a boost when Special Judge (PMLA), Lucknow, Rahul Prakash, issued a proclamation inviting those victims with legitimate claims on the Group’s properties to submit and establish their investments and validate their claims for property restoration.
The ED had appealed to the Allahabad High Court and the Special Court (PMLA), Lucknow, to exercise powers under the PMLA Act, section 8(8), second proviso, to restore properties attached or seized by the ED to victims of Shine City fraud.
Following this request, the Special Court (PMLA), Lucknow, passed an order to issue a public notice in two leading newspapers in English and vernacular language, allowing 30 days’ time from November 14, 2024, for claim submission.
The ED investigation originated from approximately 554 FIRs registered by the UP Police against Rasheed Naseem and Shine City Group.
The investigation revealed that funds were raised in Ponzi pyramid schemes under the guise of real estate investments. The funds collected were layered, transferred, and used to acquire various movable and immovable properties, which were held in the name of Shine City companies, its directors and other close associates, depriving investors of returns or promised plots.
The ED previously conducted searches across 18 locations, recovering several digital evidence, incriminating documents related to the offence of money laundering and details of properties.
The ED attached assets worth approximately Rs 263.55 Crore and arrested eight individuals. Five Prosecution Complaints (PCs) have been filed against 8 people, 13 companies, and 9 partnership firms, with all PCs taken cognisance of by the Special Court.
Initiating restitution of the attached properties to the legitimate claimants marks a significant step in the ED's ongoing efforts to ensure that the proceeds of crime are returned to those thousands affected.
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