Lucknow: Rashid Naseem, the fraudulent Shine City director who fled to Dubai after swindling investors’ money, has been declared a fugitive economic offender. Judge Rahul Prakash of the Special Court (PMLA), Lucknow, issued this order under the Fugitive Economic Offenders Act-2018.
Earlier, about ten accused, including industrialist Vijay Mallya and diamond trader Nirav Modi, have been declared fugitive economic offenders under this law. ED officials claim that this has happened for the first time in Uttar Pradesh. This is the first case registered in Lucknow under the Fugitive Economic Offenders Act (FEOA) in Uttar Pradesh.
Rashid Naseem, the chief director of Shine City Infra Project Private Limited, had defrauded investors of crores of rupees by luring them with attractive real estate schemes. ED investigation revealed facts of swindling Rs 1,000 crore from investors. Accused Rashid Naseem left the country in June 2019 and fled to Dubai via Nepal. For this, he used a second passport made through fraud.
The ED had recently filed an application against Rashid in the court under the Fugitive Economic Offenders Act-2018. For the first time in the state, the ED had started the process of auctioning the confiscated properties to return the money lost by the investors under this new law. Now its path will be easier.
FOI has been implemented for the first time against an economic offender in UP. This Act empowers any special court constituted under the Prevention of Money Laundering Act of 2002 to confiscate all the properties and assets of economic offenders accused of crimes worth more than one hundred crores, who are avoiding prosecution by staying outside the jurisdiction of Indian courts.
The purpose of this Act is to prevent economic offenders from escaping the Indian judicial system and to maintain the sanctity of the rule of justice in India.
For this, the special court declares the accused an economic offender, after which his properties can be confiscated.
According to ED, Interpol had issued non-bailable warrant, look out circular and red corner notice against Rashid. Even after this, Rashid Naseem refused to return to India to avoid legal action.
ED has so far seized properties worth Rs 127.98 crore of Shine City operators, which were raised from the money defrauded from investors.
ED had started its investigation by registering a case under the Money Laundering Act on the basis of 554 cases filed against Rashid and Shine City Group. Rashid is also committing fraud while staying in Dubai. Recently, ED arrested many of his close associates and attached properties worth Rs 190 crore.
