The Enforcement Directorate (ED) has initiated action under the Fugitive Economic Offenders Act (FEOA), 2018, against Rashid Naseem, the chairman of Shine City Group, in connection with a Rs1,000 crore fraud case. The agency suspects that Rashid Naseem is currently operating from Dubai, evading legal action in India. This is the first time this law has been invoked against a fugitive economic offender in Uttar Pradesh.
Rashid Naseem, along with his brother Asif Naseem and associates Amitabh Kumar Srivastava and Meera Srivastava, were initially arrested in connection with a Prevention of Money Laundering Act (PMLA) investigation related to the Shine City scam. The fraud, which targeted thousands of investors, promised huge returns on investments but ultimately defrauded them of around Rs800-1000 crore.
The Shine City Group used a deceptive investment scheme, convincing people to invest in the company’s so-called ventures in exchange for high returns. However, the investigation revealed that the proceeds from the fraud were funneled through various companies controlled by the accused and their associates.
The ED’s investigation has so far resulted in the attachment of assets worth Rs128 crore linked to the accused. The Fugitive Economic Offenders Act gives the court the power to seize the properties and assets of individuals who are charged with financial crimes exceeding Rs100 crore and are evading prosecution by fleeing the country. The law had previously been applied to high-profile offenders like Vijay Mallya and Nirav Modi.
Rashid Naseem’s flight to Dubai and his evasion of Indian legal proceedings have prompted the ED to apply this stringent law, making it the first such case in Uttar Pradesh under the FEOA. The authorities are continuing their efforts to track Naseem’s whereabouts and bring him to justice.
