The Directorate of Enforcement (ED), Lucknow zonal office, made substantial progress in its efforts to provide justice to defrauded Shine City Group investors.
In a significant development, an order, which is the first of its type, was issued by the special judge of the special court (PMLA), Lucknow, Rahul Prakash.
He issued a proclamation inviting those victims with legitimate claims on Shine City Group properties to submit and establish their investments to validate their claims for property restoration.
The ED 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 the Shine City fraud.Following this request, the special court (PMLA), Lucknow, was pleased to pass an order to issue a public notice.
The ED investigation originated from approximately 554 FIRs registered by UP police against Rasheed Naseem and Shine City Group.
The ED 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 pieces of 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) were filed against eight people, 13 companies, and nine 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.
