Why has the ED declared Rashid Naseem a fugitive in the UP ponzi scheme?
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Synopsis
The Special PMLA Court has labeled Rashid Naseem, promoter of Shine City Group, as a Fugitive Economic Offender. This development comes amid ongoing investigations into a massive ponzi scheme affecting countless investors. The ED's efforts to attach properties amounting to Rs 127.98 crore aim to restore justice for the victims involved.
Key Takeaways
- Rashid Naseem has been declared a Fugitive Economic Offender.
- The ED has attached properties worth Rs 127.98 crore.
- Investors are encouraged to submit claims for restitution.
- Multiple FIRs were registered against Naseem and Shine City Group.
- The case involves complex layers of money laundering.
Lucknow, May 1 (NationPress) In a decisive move against the architect of a massive ponzi scheme, the Special PMLA Court has officially labeled Rashid Naseem, the principal promoter of Shine City Group, as a Fugitive Economic Offender, according to an official announcement made on Thursday.
The Enforcement Directorate (ED) has initiated four prosecution complaints related to this case and has provisionally attached assets valued at Rs 127.98 crore, identified as proceeds of crime.
Throughout the investigation, the ED pinpointed the primary accused and associated parties involved in the laundering of the unlawfully obtained funds.
It was uncovered during the investigation that Rashid Naseem evaded questioning despite a summons being issued and ultimately escaped India through Nepal, currently residing in Dubai, UAE.
Despite a Non-Bailable Warrant, a Look Out Circular, and a Red Notice from Interpol, Rashid Naseem has refused to return to India to confront the legal proceedings, as stated.
Consequently, the ED has filed a request for his designation as a Fugitive Economic Offender under the FEOA, 2018.
In November, beleaguered investors of Shine City Group received a ray of hope when the Special Judge (PMLA), Lucknow, Rahul Prakash, issued a proclamation inviting victims with legitimate claims on the Group’s assets to present and substantiate their investments for property restitution.
The ED previously approached the Allahabad High Court and the Special Court (PMLA), Lucknow, requesting the exercise of powers under the PMLA Act, section 8(8), second proviso, to restore properties that have been attached or seized by the ED to the victims of the Shine City fraud.
In response to this appeal, the Special Court (PMLA), Lucknow, issued an order for a public notice to be published in two prominent newspapers, both in English and local languages, granting 30 days from November 14, 2024, for claims submission.
The ED's investigation was initiated following approximately 554 FIRs lodged by the UP Police against Rashid Naseem and Shine City Group.
The findings revealed that funds were raised through Ponzi pyramid schemes disguised as real estate investments. The collected funds were layered, transferred, and utilized to acquire various assets, which were held under the names of Shine City companies, its directors, and other close associates, leaving investors without promised returns or plots.
The ED has previously conducted searches across 18 locations, uncovering substantial digital evidence, incriminating documents pertinent to the money laundering offense, and details of associated properties.
In total, the ED has attached assets worth approximately Rs 263.55 crore and apprehended eight individuals. Five Prosecution Complaints (PCs) have been filed against eight individuals, thirteen companies, and nine partnership firms, all of which have been acknowledged by the Special Court.
The commencement of the restitution process for the attached properties to rightful claimants signifies a critical advancement in the ED's ongoing mission to ensure that the proceeds of crime are returned to the multitude of victims affected.
Point of View
It is imperative to highlight the ongoing battle against economic offenders and the commitment of authorities to uphold justice. The declaration of Rashid Naseem as a Fugitive Economic Offender underscores the seriousness of financial crimes and the efforts to safeguard the interests of the victims, reinforcing the principle that no one is above the law.
NationPress
16/06/2025
Frequently Asked Questions
What led to Rashid Naseem being declared a fugitive?
Rashid Naseem was declared a fugitive due to his failure to respond to summons and subsequent flight from India to avoid questioning regarding the ponzi scheme.
How much money is involved in the Shine City ponzi scheme?
The Shine City ponzi scheme has led to the attachment of properties worth approximately Rs 127.98 crore, identified as proceeds of crime.
What actions have been taken by the ED?
The ED has filed multiple prosecution complaints, attached assets, and issued public notices to facilitate restitution for the victims of the Shine City fraud.
How can victims claim their investments?
Victims can submit claims to validate their investments as per the public notice issued by the Special Court, which allows a 30-day window for submissions.
What is the current status of Rashid Naseem?
Rashid Naseem is currently believed to be residing in Dubai, UAE, despite multiple legal notices and warrants issued.
