LUCKNOW| December 6, 2025: In one of the biggest financial enforcement actions in Uttar Pradesh, the Enforcement Directorate (ED) has achieved a major breakthrough in the Shine City Group scam, declaring its chief accused Rashid Naseem as a Fugitive Economic Offender (FEO) under the Fugitive Economic Offenders Act (FEOA), 2018.
The Special PMLA Court in Lucknow has also ordered the confiscation of movable and immovable properties worth ₹127.98 crore, belonging to Naseem and his associates, in favour of the Central Government. Officials confirmed this as the largest-ever property attachment under the FEOA in the state.
A Ponzi Scheme Disguised as Real Estate Investment
The Shine City Group lured thousands of investors across Lucknow, Varanasi, and other cities by offering lucrative real estate and high-return investment schemes. The company promised plots, housing projects, and double returns through its “Get Rich Fast” plans, which later turned out to be a Ponzi-cum-Pyramid scheme.
ED’s investigation revealed that the collected funds were diverted through multiple shell companies and dummy accounts, rather than being used for any legitimate business. Over 554 FIRs were registered by the Uttar Pradesh Police, forming the foundation for ED’s money laundering probe.
ED Investigation: Evidence of Systematic Fraud
Over the past two years, ED conducted raids at 18 locations across India, recovering digital records, documents, and transaction data. So far, properties worth ₹264.10 crore have been attached, and eight individuals have been arrested.
The agency has filed six prosecution complaints (charge sheets) involving 38 accused individuals and entities, including top management members of the Shine City Group.
How Rashid Naseem Escaped the Country
Investigators found that Rashid Naseem illegally fled India via the Nepal border and reached Dubai (UAE) to evade arrest. A non-bailable warrant (NBW), Lookout Circular (LOC), and Interpol Red Notice were issued against him, but he never returned.
Crucial evidence emerged when ED obtained Zoom meeting links used by Naseem to pressurise victims into withdrawing FIRs. Zoom’s data logs confirmed that the sessions originated from UAE-based IP addresses, verifying his location and continued absconding.
Court Declares Him a Fugitive Economic Offender
Following ED’s petition under the FEOA, the Special PMLA Court ruled on April 30, 2025, that Naseem had deliberately absconded to evade arrest and judicial proceedings. Subsequently, on December 3, 2025, the court ordered that properties worth ₹127.98 crore belonging to Naseem and his group be confiscated in favour of the Government of India.
Relief for Thousands of Defrauded Investors
To ensure restitution, ED requested the court’s permission to liquidate the attached assets and return the proceeds to investors defrauded by Shine City. The court has since issued public notices, inviting claims from affected depositors. As of now, over 6,500 investors have filed claims, which are under verification by the ED before funds are refunded directly to victims’ bank accounts.
Legal Challenges and Wider Impact
The Shine City Group had earlier challenged the ED’s actions in the Supreme Court, but the recent confiscation under FEOA has closed most legal escape routes for the accused. Legal experts believe this order could serve as a landmark precedent in fight against economic fugitives similar to cases like Nirav Modi and Vijay Mallya.
ED’s Firm Message: No Escape for Financial Fraudsters
Officials said the action sends a strong signal that economic crimes and public fund frauds will not go unpunished. An ED officer involved in the investigation remarked,
“This case demonstrates that those who exploit public trust and siphon investors’ money cannot hide behind borders. The law will eventually catch up.”
With Rashid Naseem officially designated a fugitive and assets worth ₹127.98 crore seized, the ED’s crackdown represents a new phase of zero-tolerance enforcement against white-collar crime in India.
