Uttar Pradesh: ED files second prosecution complaint in Shine City fraud case

New Delhi [India], June 19 : The Enforcement Directorate (ED) filed a prosecution complaint in a Rs 1,000 crore alleged money laundering case against real estate firm Shine City, whose owner and officials have been booked by police in over 550 FIRs lodged across Uttar Pradesh, the agency said on Wednesday.
ED filed the prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Uttar Pradesh's Lucknow. This is the second prosecution complaint filed by ED in the matter.
The ED has now filed a prosecution complaint against Asif Naseem, Rashid Naseem, Amitabh Kumar Srivastava, Meera Srivastava and 11 Shine City Group companies. The court took cognizance of the prosecution complaint on June 10.
All properties in Shine City are in the name of Aquib, who is the brother of Rasheed Naseem, owner of Shine City. The company used to take money from people in the name of giving them plots at low rates and promised to give them possession of land after a certain period.
In most cases, when investors approached the company for possession after the completion of the stipulated period, they were forced to invest money in other schemes. Gradually, people started realising that they were being defrauded and they lodged FIRs against him.
The ED initiated an investigation based on approximately 554 First Information Reports (FIRs) registered by Uttar Pradesh Police against Rasheed Naseem and Shine City Group of Companies.
The ED's investigation revealed that the accused persons, associates and promoters incorporated several companies, 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 said its investigation identified the fund trail and it was found that money collected from the customers was diverted and transferred to various directors, promoters, associates and group companies under the guise of commission and royalty.
"The funds so diverted were utilised for the purchase of property," said the ED, adding that its investigation till now has identified such properties worth Rs 128 crore and has attached them under the provisions of PMLA.
The role of directors and companies controlled by them in money laundering has been established.
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, Udhaw Singh, Ashif Naseem, Amitabh Srivastava and Meera Srivastava.
"The custodial interrogation revealed the involvement of the accused in the offence of money laundering," said the ED.