ED Attaches Rs 264 Crore Assets From Shine City Group in Major Real Estate Fraud Case

The probe agency initiated proceedings following the registration of more than 550 FIRs by Uttar Pradesh Police.

The Enforcement Directorate (ED) has officially designated Rashid Naseem, founder of Shine City Group, as a Fugitive Economic Offender (FEO) and has secured the confiscation of properties valued at Rs 127.98 crore in connection with a real estate and investment fraud. This action follows orders from the Special Court under the Prevention of Money Laundering Act (PMLA) in Lucknow.

During their investigation, authorities conducted searches across 18 different premises, which resulted in the recovery of crucial digital evidence, suspicious transaction patterns, and documents related to money laundering activities. To date, assets worth Rs 264.10 crore have been attached, and eight associates have been taken into custody. The agency has also filed six prosecution complaints against 38 accused entities and individuals.

The investigation commenced after Uttar Pradesh Police registered over 550 FIRs accusing Shine City of defrauding thousands of citizens through Ponzi-cum-pyramid schemes disguised as lucrative real estate investment opportunities. Investigations revealed that the group had established numerous shell companies and misappropriated public deposits instead of developing legitimate projects.

Naseem had fled India without any legal travel documentation and was discovered to be managing the operation from Dubai. Despite receiving summons, a Non-Bailable Warrant, a Look Out Circular, and an Interpol Red Notice, he refused to return to India. Access to Zoom meeting logs that Naseem used to communicate with victims helped the ED pinpoint his location in the UAE, strengthening the grounds for declaring him a fugitive.

On April 30, 2025, the Special Court officially declared him an FEO - one of the first cases under the Fugitive Economic Offenders Act in Uttar Pradesh. Subsequently, on December 3, 2025, the court ordered the confiscation of his assets and those connected to the Shine City network.

Alongside these enforcement actions, the probe agency is actively pursuing restitution for victims under Section 8(8) of PMLA. More than 6,500 affected investors have already submitted claims following a public notice, and the verification process is currently underway. The confiscated properties are expected to facilitate direct compensation to victims who lost their life savings to the scheme.

The probe agency emphasized that this action highlights its commitment to pursuing major economic offenders and ensuring that proceeds of crime are recovered and returned to the public.