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ED Enables Refund for Two Victims of Shine City Infra P rojects
Real Estate

ED Enables Refund for Two Victims of Shine City Infra P rojects

In a landmark move, the Enforcement Directorate (ED) facilitated the restitution of funds for two victims of the Shine City Infra Projects fraud, marking a pivotal moment in the on-going investigation into the real estate scam.

The Special Court, under the direction of Judge Rahul Prakash, instructed the ED to refund Rs 7.61 lakh to Husna Bano and Rs 4 lakh to Neeta Verma, both victims of the scheme.

According to ED sources, around 1,800 claims have been submitted by victims across Uttar Pradesh who were affected by the Shine City fraud. These applications are undergoing meticulous verification and will be presented to the court for final approval.

The fraud came to light when victims filed petitions under Section 8(7) of the Prevention of Money Laundering Act (PMLA), highlighting how they had invested substantial amounts in Shine City property schemes but were ultimately defrauded. Following a series of court rulings, including an Allahabad High Court order, the ED sought the Special Court in Lucknow's approval under Section 8(8) of the PMLA to restore properties attached or seized by the agency to the victims. Responding to this appeal, the court issued a public notice urging other victims to submit their claims and validate their investments for potential recovery.

Husna Bano, one of the victims, had invested Rs 10.02 lakh in a Shine City property scheme but only received Rs 2.40 lakh as a refund earlier. On Thursday, the remaining Rs 7.61 lakh was returned to her. However, her request for interest on the amount was denied by the court, which upheld the ED's argument that the PMLA does not permit the payment of interest on refunded sums.

Similarly, Neeta Verma, another victim, had invested Rs 5.65 lakh in the scheme and initially received no refund. After the ED verified her bank statements and receipts confirming a Rs 4 lakh transfer to Shine City's account, the court recognised her as a legitimate investor and ordered the return of her principal amount. Her appeal for 18 per cent interest on the refund was also rejected.

The ED's investigation into Shine City Group was triggered by nearly 554 FIRs filed by the Uttar Pradesh Police against Rasheed Naseem and other associates of the company. The fraud involved Ponzi-like pyramid schemes disguised as real estate investments. Funds collected from investors were layered and used to acquire assets under the names of Shine City companies, its directors, and associates, leaving investors without the promised returns or properties.

In a landmark move, the Enforcement Directorate (ED) facilitated the restitution of funds for two victims of the Shine City Infra Projects fraud, marking a pivotal moment in the on-going investigation into the real estate scam. The Special Court, under the direction of Judge Rahul Prakash, instructed the ED to refund Rs 7.61 lakh to Husna Bano and Rs 4 lakh to Neeta Verma, both victims of the scheme. According to ED sources, around 1,800 claims have been submitted by victims across Uttar Pradesh who were affected by the Shine City fraud. These applications are undergoing meticulous verification and will be presented to the court for final approval. The fraud came to light when victims filed petitions under Section 8(7) of the Prevention of Money Laundering Act (PMLA), highlighting how they had invested substantial amounts in Shine City property schemes but were ultimately defrauded. Following a series of court rulings, including an Allahabad High Court order, the ED sought the Special Court in Lucknow's approval under Section 8(8) of the PMLA to restore properties attached or seized by the agency to the victims. Responding to this appeal, the court issued a public notice urging other victims to submit their claims and validate their investments for potential recovery. Husna Bano, one of the victims, had invested Rs 10.02 lakh in a Shine City property scheme but only received Rs 2.40 lakh as a refund earlier. On Thursday, the remaining Rs 7.61 lakh was returned to her. However, her request for interest on the amount was denied by the court, which upheld the ED's argument that the PMLA does not permit the payment of interest on refunded sums. Similarly, Neeta Verma, another victim, had invested Rs 5.65 lakh in the scheme and initially received no refund. After the ED verified her bank statements and receipts confirming a Rs 4 lakh transfer to Shine City's account, the court recognised her as a legitimate investor and ordered the return of her principal amount. Her appeal for 18 per cent interest on the refund was also rejected. The ED's investigation into Shine City Group was triggered by nearly 554 FIRs filed by the Uttar Pradesh Police against Rasheed Naseem and other associates of the company. The fraud involved Ponzi-like pyramid schemes disguised as real estate investments. Funds collected from investors were layered and used to acquire assets under the names of Shine City companies, its directors, and associates, leaving investors without the promised returns or properties.

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