LUCKNOW: In first of its kind initiative, the Enforcement Directorate (ED) on Thursday facilitated the restitution of funds for two victims of Shine City Infra Projects, marking a significant step in the ongoing investigation into the fraudulent real estate scheme.
Judge Rahul Prakash of the Special Court directed the ED to refund Rs 7.61 lakh to Husna Bano and Rs 4 lakh to Neeta Verma, both of whom were duped by the company.
Sources within the ED revealed that approximately 1,800 applications have been received from individuals across Uttar Pradesh who were victims of the Shine City fraud. These claims are being carefully scrutinised and will be forwarded to the court for final settlement.
The case came to light following petitions filed by the victims under Section 8(7) of the Prevention of Money Laundering Act (PMLA). The victims had invested substantial sums in Shine City’s property schemes, only to be defrauded by the company.
Following multiple court rulings, including an order from the Allahabad High Court, the ED appealed to the Special Court in Lucknow to exercise its powers under Section 8(8) of the PMLA. The appeal sought to restore properties attached or seized by the ED to victims of the Shine City fraud. In response, the special judge issued a proclamation urging other victims with legitimate claims on Shine City properties to submit their details and validate their investments for potential restitution.
Husna Bano invested Rs 10.02 lakh in a Shine City property scheme but was refunded only Rs 2.40 lakh, leaving a remaining amount of Rs 7.61 lakh, which was handed over to her on Thursday. However, Bano also sought interest on her investment, which was contested by the ED. The ED argued that, under PMLA rules, interest on the refunded amount was not permissible. The court upheld this stance, ordering the refund of only the principal amount.
Similarly, Neeta Verma invested Rs 5.65 lakh in the scheme but did not receive any refund initially. Verma’s documentation, including bank statements and receipts showing a Rs 4 lakh transfer to Shine City’s account, was verified by the ED, confirming her investment. The court acknowledged Verma as a bona fide investor and ordered the return of her principal amount. Verma’s request for 18% interest was also rejected.
The ED’s investigation into the Shine City Group was initiated based on approximately 554 FIRs filed by the UP Police against Rasheed Naseem and other Shine City associates. The fraud was carried out through Ponzi-like pyramid schemes disguised as real estate investments.
These schemes raised funds from investors, which were then layered and transferred to acquire movable and immovable assets under the names of Shine City companies, its directors, and associates. This practice left investors without returns or promised plots.
