LUCKNOW: On Thursday, a special court ordered the confiscation of assets valued at approximately Rs 128 crore in connection with the fugitive economic offender proceedings initiated by the Enforcement Directorate (ED) against the Shine City Group based in Uttar Pradesh, along with its fugitive promoter, Rashid Naseem, accused of deceiving investors.
Officials noted that this decision was made under the Fugitive Economic Offenders Act (FEOA) of 2018, marking the first case of asset confiscation via this mechanism in Uttar Pradesh.
The ED will confiscate movable and immovable assets worth Rs 127.98 crore, which had been previously attached under anti-money laundering laws.
Naseem was declared a fugitive economic offender by the court in April.
According to the ED, “The properties confiscated under the FEOA will now be vested in the Central Government, providing a pathway for compensating victims through the realization of these confiscated assets.”
Previously, the court issued a proclamation after the ED requested for the restoration of these assets to the victims, leading to approximately 6,500 claims from individuals who were defrauded by the Shine City Group.
However, the Shine City Group has contested the restitution proceedings by submitting a special leave petition to the Supreme Court.
The FEOA aims to hold accountable individuals who flee India to escape legal repercussions after committing fraud exceeding Rs 100 crore.
This investigation is linked to a Prevention of Money Laundering Act (PMLA) case initiated after the ED reviewed 554 FIRs registered against Naseem and the Shine City Group by the Uttar Pradesh Police.
The FIRs accuse the group of orchestrating extensive fraud, collecting public funds ranging from Rs 800 to 1,000 crore through fraudulent real estate schemes and multi-level marketing, promising substantial returns while ultimately cheating investors, the ED stated.
The agency reported that Naseem “deliberately” avoided investigation, neglecting to respond to summons before fleeing India via Nepal, currently residing in Dubai, UAE.
The ED produced digital evidence of Zoom meetings conducted by Naseem from the UAE to illustrate that he was “wilfully” evading legal action connected to money laundering and FEOA proceedings, as reported by officials.
Using technical analysis, it was determined that the IP addresses used during these meetings were located in the UAE, confirming his availability in Dubai.
The ED has apprehended eight individuals and submitted six chargesheets in relation to this case.
