ED Takes Major Step Towards Restitution for Shine City Fraud Victims, Issues Landmark Proclamation for Property Claims
(Judicial Quest News Network)
The Directorate of Enforcement (ED) has made a significant breakthrough in its ongoing efforts to secure justice for defrauded investors of Shine City Group. In a landmark move, the Special Judge of the Special Court (PMLA), Lucknow, Shri Rahul Prakash, has issued a first-of-its-kind proclamation, inviting victims with legitimate claims to Shine City Group properties to come forward and validate their investments for potential restitution.
This decision follows the ED’s appeal to the Allahabad High Court and the Special Court (PMLA), Lucknow, seeking the restoration of properties seized by the ED under the Prevention of Money Laundering Act (PMLA), Section 8(8). In response, the court has authorized the issuance of a public notice in leading national and vernacular newspapers, providing a 30-day window starting November 14, 2024, for claimants to submit their applications and substantiate their claims.
The investigation by the ED began after the registration of approximately 554 FIRs by the UP Police against Rasheed Naseem and Shine City Group. The probe revealed that Shine City had raised funds through Ponzi schemes, masquerading as real estate investments, and used these funds to acquire various movable and immovable assets. These properties were held in the names of Shine City companies, its directors, and their associates, leaving investors deprived of promised returns and plots.
To date, the ED has conducted searches across 18 locations, recovering critical digital evidence and incriminating documents that detail the money laundering operations behind Shine City’s fraudulent activities. The ED has successfully attached assets worth approximately ₹263.55 Crore and arrested eight individuals. In total, five Prosecution Complaints (PCs) have been filed against 8 individuals, 13 companies, and 9 partnership firms, all of which have been taken cognizance of by the Special Court.
The proclamation represents a significant step in the ED’s broader efforts to restore the Proceeds of Crime to the thousands of victims who were defrauded by the Shine City Group. As part of its ongoing commitment to combat financial crime and ensure justice for victims, the ED continues to push for the restitution of assets and uphold the integrity of the legal process.
This move offers a glimmer of hope for investors who were swindled in the Shine City scam, and marks a key milestone in the ED’s relentless pursuit of accountability in financial crimes.
