The Enforcement Directorate (ED), two victims of the Shine City Infra Projects fraud have received refunds, marking an important milestone in the ongoing investigation into the fraudulent real estate scheme. Judge Rahul Prakash of the Special Court in Lucknow directed the ED to refund Rs 7.61 lakh to Husna Bano and Rs 4 lakh to Neeta Verma, both of whom were defrauded by the company.
The Shine City fraud came to light after several victims filed petitions under Section 8(7) of the Prevention of Money Laundering Act (PMLA). The victims had invested large sums of money in Shine City’s property schemes, only to realize that the company had duped them. As part of the ongoing investigation, the ED has received approximately 1,800 applications from victims across Uttar Pradesh. These claims are being carefully scrutinized, and the ED is working towards ensuring restitution for those with valid claims. The Special Court has issued a proclamation, inviting other victims to submit their details for validation and potential refunds.
Husna Bano had invested Rs 10.02 lakh in a Shine City property scheme but was only refunded Rs 2.40 lakh, leaving an outstanding amount of Rs 7.61 lakh, which was returned to her on Thursday. However, her request for interest on the refunded amount was rejected by the court, as the ED argued that, according to PMLA rules, interest was not permissible. Similarly, Neeta Verma, who had invested Rs 5.65 lakh, was refunded Rs 4 lakh after her claim was validated through bank statements and receipts. The ED’s investigation into Shine City was initiated following multiple FIRs filed by the UP Police against the company’s directors, including Rasheed Naseem. The company ran Ponzi-like pyramid schemes disguised as real estate investments, raising funds from investors and then misappropriating the money for personal gain. The schemes left many investors without promised returns or properties, leading to widespread financial losses. This move by the ED to return funds to victims is a crucial step in holding the culprits accountable and restoring justice to defrauded investors.
