Rashid Naseem declared fugitive economic offender on ED’s request

Rashid Naseem, promoter of real estate firm Shine City, absconding since 2019, has been declared a fugitive economic offender (FEO) by a Lucknow court on the Enforcement Directorate’s (ED) request, agency said on Thursday.

Brought in by the government in 2018 to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, FEO act empowers authorities for non-conviction-based attachment and confiscation of proceeds of crime and assets, where amount involved is above ₹100 crore.

ED said in a statement that it a Lucknow special prevention of money laundering act court declared Naseem - the main promoter of Shine City Group – as a FEO on April 30.

Naseem is the 15th fugitive to be declared FEO. The list includes diamantaire Nirav Modi, former liquor baron Vijay Mallya, Sterling Biotech’s Nitin, Chetan and Dipti Sandesara; and Iqbal Mirchi’s wife Hajra Iqbal Menon and her sons – Zunaid and Asif. Overall, ED has till date approach courts to declare 26 individuals as FEOs. Its requests against Modi’s uncle Mehul Choksi, arms dealer Sanjay Bhandari and promoters of Mahadev app – Sourabh Chandrakar and Ravi Uppal are pending in courts.

ED had initiated investigation against him based on approximately 554 first information reports filed by Uttar Pradesh Police in which it is alleged amounts worth ₹800–1000 crore was collected through fraudulent real estate schemes and multi-level marketing by Naseem and Shine City, with promises of high returns. “The investors were ultimately cheated,” ED said.

Also Read:Shine City fraud case: Court accepts ED’s plea to declare Naseem FEO

The agency has filed four charge sheets in this case so far.

“It was revealed that Naseem deliberately evaded the investigation, failed to appear despite issuance of summons, and ultimately absconded from India via Nepal and is currently residing in Dubai, UAE,” ED said.

He had allegedly fled from India in 2019, officials said.

ED has identified several addresses of Naseem in the UAE. These include a villa at Dubai Library Road, Abu Dhabi; a property in District 1, Jumeirah Village triangle, Dubai; a commercial property in Dubai, and another residential address in Dubai, according to an officer who asked not to be named.