Shine City chairman likely to be declared fugitive economic offender
The Enforcement Directorate (ED) is likely to book the alleged kingpin of a Rs 1,000 crore-fraud, Shine City Group chairman Rashid Naseem (who is suspected to be operating from Dubai) under the Fugitive Economic Offenders Act (FEOA), 2018, said senior ED officials here on Wednesday.
The FEOA empowers any special court--set up under the Prevention of Money Laundering Act (PMLA), 2002--to confiscate all properties and assets of economic offenders who are charged in offences measuring over Rs 100 crore and are evading prosecution by remaining outside the jurisdiction of Indian courts.
“This is for the first time this Act will be slapped against a fugitive economic offender in U.P. It was slapped against liquor baron Vijay Mallya and diamond trader Nirav Modi, who fled the country after defaulting on bank loans worth hundreds of crores of rupees,” an ED official said.
He said the ED will soon move an application under FEOA in Lucknow’s special PMLA court after which the court could declare him a proclaimed fugitive economic offender.
Earlier, the ED arrested Asif Naseem (Rashid’s brother), Amitabh Kumar Srivastava and Meera Srivastava, in connection with an investigation under the provisions of the PMLA, 2002, in a case related to the Shine City scam.
The ED had initiated investigation under PMLA Act in the Shine City fraud case based on around 250 FIRs registered by Uttar Pradesh Police against Rasheed Naseem, his younger brother Asif and Shine City Group, wherein they had collected approximately ₹800-1000 crore from the public.
The ED investigation revealed that the proceeds of crime were transferred to various other companies controlled by them and individuals close to them.
The ED investigation has, so far, resulted in attachment of properties worth ₹128 crore.