ED Tightens Action in Shine City Scam as Promoter Declared Fugitive Economic Offender

Massive Investment Scheme Under the Scanner

The Shine City real-estate scam, which allegedly duped thousands of investors across several states, has entered a critical phase of investigation. The Enforcement Directorate (ED) has intensified action against Rashid Naseem, the main promoter of the group, who is accused of orchestrating a vast investment network that collapsed after collecting hundreds of crores from the public.

Authorities claim that the scheme operated by promising high returns, residential plots, and commercial development opportunities that never materialised for most investors.

Promoter Classified as Fugitive Economic Offender

With repeated non-appearance and evasion of summons, the key accused has now been marked as a fugitive economic offender.
This designation grants the agency wider powers, including confiscation of assets linked to the individual, even before a conviction is secured. The classification is used in cases where the accused is believed to be intentionally avoiding Indian jurisdiction.

ED Traces Money Flow and Property Holdings

Investigators have been tracking the diversion of funds collected from investors. Preliminary findings indicate that large sums were moved through a network of accounts and layered into various businesses connected to the promoter.
Multiple properties, including land parcels and commercial assets, are under verification for potential attachment as part of the ongoing money-laundering probe.

Officials believe that identifying the complete asset pool is essential for compensating victims who invested their savings into the scheme.

Thousands of Investors Affected

The Shine City group attracted investors through aggressive marketing, seminars, and promotional campaigns that highlighted lucrative growth prospects.
Over time, projects stalled, payouts stopped, and offices closed, leaving investors without clarity on the status of their promised returns or properties. The scale of the impact continues to widen as more complaints surface.

Legal Proceedings Expected to Accelerate

With the fugitive declaration, agencies are expected to push forward with property seizures and recovery proceedings.
Parallel investigations by state authorities, financial intelligence units, and registrar offices are likely to strengthen the case as more financial records and corporate documents come under scrutiny.

Shunyatax Global Insight

The Shine City episode highlights how unregulated investment networks can multiply risks for ordinary citizens, especially when returns appear unusually attractive.
As enforcement efforts intensify, the case underscores the importance of due diligence, regulatory oversight, and swift inter-agency coordination.

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