ED’s first such initiative in U.P.: 2,360 Shine City investors likely to get back capital amount
The ED has attached Shine City group properties worth ₹264 crore so far under provisions of the PMLA, 2002
Under first such initiative of the Enforcement Directorate in Uttar Pradesh, as many as 2,360 legitimate investors who were defrauded by Shine City group of companies and its operators are likely to get back their capital amount by March next year, said senior ED officials of Lucknow zone here on Wednesday.
The ED has attached Shine City group properties worth ₹264 crore so far under provisions of the PMLA, 2002. The operators of the companies allegedly vanished after collecting around ₹1,000 crore from the public on the promise of providing plots and high returns to them in different cities of Uttar Pradesh, they added.
The ED is investigating the matter after registering a case under the Prevention of Money Laundering Act (PMLA), 2002, considering as many as 554 FIRs registered by Uttar Pradesh police against Rashid Naseem, the promoter of Shine City Group, and Shine City group of companies.
The ED officials said the agency had made efforts to provide justice to defrauded Shine City Group investors by getting an order, which is first-of-its-kind, from the special judge of the special court, PMLA, to invite legitimate claims from the victims to submit and establish their investments to validate their claims for property restoration.
“We have given a window of one month from November 15 to December 15 to investors to submit their claims so that further process could be initiated to verify their claims and initiate the process to auction the attached property to return their capital amounts,” said a senior ED official.
During the given window, as many as 2,100 people submitted their claims, but around 260 others approached the court on December 16 demanding more time to submit their claims following which the court provided them the time till February 15,” the official added.
“We are making efforts that the remaining 260 investors submit their claims this month and gradually we could verify their claims through banks and other sources to initiate the auction process as soon as the given time frame by the court ends on February 15,” he said.
As per the official, the attached properties in form of plots and agricultural lands are worth ₹264 crore and the claims submitted so far are around ₹211 crore.
“If we presume that the remaining 260 investors also submit their claims of around ₹20 crore, the agency will be able to return the capital amount of all 2,360 investors,” he added.
The official further said the priority is to return the investors’ capital amount first and the interest amount would be considered later provided there is some amount left after giving back the capital amount to the investors.
He said the process of auctioning the attached properties will be initiated under the PMLA Act, section 8(8), second provision, to restore properties attached or seized by the ED.
Earlier on September 25, the ED had filed an application under section 4 of the Fugitive Economic Offender Act (FEOA), 2018, before the special court (PMLA), Lucknow, Uttar Pradesh for declaration of Rashid Naseem as fugitive economic offender and prayed for confiscation of the movable and immovable assets of Rashid Naseem, his associates and companies controlled by them.
The ED investigation under FEOA has revealed that Rashid Naseem has left India and it is conclusively ascertained that he is residing in Dubai, United Arab Emirates (UAE). He is not returning to India to face due process of law. Non-bailable warrant of arrest, look out circular and red corner notice of the Interpol have been issued against Rashid Naseem.
