In the matter of Shine City Fraud, the Directorate of Enforcement (ED) carried out search operations on November 24, 2023, at eighteen sites in Lucknow, Varanasi, Allahabad, Mumbai, and Delhi, in accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The homes of agents who have worked with Shine City were searched in an effort to entice investors and aid in the production of criminal gains.
Additionally, searches were carried out at the homes and offices of directors, businesses to which the primary accused, Rasheed Naseem, moved large sums of money obtained from criminal activity, and the Shine City group of companies under the guise of loans and investments. During search operations, multiple digital devices, immovable properties, unaccounted cash, incriminating documents about the ongoing involvement of some people in money laundering, and jewellery valued at Rs. 1.60 crores (95 lakhs in cash and 65 lakhs in jewellery) were found and seized.
The Uttar Pradesh Police had filed about 250 FIRs against Rasheed Naseem and the Shine City Group of Companies, alleging that they had committed fraud and amassed a substantial sum of money—roughly Rs. 800-1000 Crore—from the public under the guise of investments. These FIRs served as the basis for the ED’s investigation.
The results of the ED investigation showed that several agents had worked for Shine City to entice investors and assist Rasheed Naseem and Shine City in creating the profits of crime. The results of the ED investigation also showed that several additional businesses and people received the proceeds of crime. As a consequence of the search, evidence was gathered that implicated one Mrs. Shashi Bala in actively helping Rasheed Naseem hide and launder the profits of the crime. She was a close confidante of Rasheed Naseem and spoke with him and his clients on a regular basis over the WhatsApp messaging app. Until the time of the search, she was involved in money laundering.
Properties valued at Rs. 128 crore have been attached as a consequence of ED investigations up to this point. Rasheed Naseem, the primary accused, is evading capture. Mrs Shashi Bala was taken into custody by the ED on November 25, 2023, and on November 25, 2023, she appeared before the Special Judge (SPE/CBI) (Special Court for PMLA Cases) in Lucknow, Uttar Pradesh. ED is under the custody of the Honorable Court for six days, ending on November 30, 2023. Additional research is currently being conducted.
