The Enforcement Directorate (ED) arrested an operative of the tainted real estate company Shine City from Hardoi district on Saturday.
The arrest of Shashibala Singh was made after a series of raids conducted by the ED over the past 24 hours.
Singh is accused of working with Shine City’s owner, Rasheed Naseem, to dupe investors through fraudulent investment schemes.
Naseem, who is believed to have fled to Dubai, is currently facing a Rs 5 lakh reward for his arrest and a red corner notice has been issued against him.
The ED produced Singh in a Lucknow local court and obtained a six-day remand order.
ED sources allege that Singh and Naseem conspired to launder money through various channels, including real estate investments and political connections.
The raids conducted by the ED yielded cash and jewellery worth Rs 1.60 crore, along with incriminating evidence related to Shine City’s hidden properties.
Investigators involved in the probe revealed that raids were conducted at the premises of Estone Builders in Lucknow, Vardhaman Builders and Bhagwati Diamonds in Delhi, and the Mumbai residence of Uddhav Singh, who has ties to a political party.
The ED seized cash and jewellery worth Rs 1.60 crore during these raids.
Sources said that these individuals were allegedly acting as conduits for Naseem to conceal his ill-gotten gains.
They further stated that “substantial incriminating evidence of Shine City’s hidden properties” was gathered, which could lead to future asset attachments.
In 2021, the ED first initiated a Prevention of Money Laundering Act (PMLA) case against Shine City and its directors, including Rasheed Naseem, Asif Nafees, and Javed Iqbal. This latest action by the ED brings the total value of attached assets in the Shine City case to approximately Rs 128.54 crore.
The ED had previously attached immovable properties worth Rs 110.62 crore belonging to the accused individuals and Shine City Group companies.
Shine City is accused of defrauding investors by promising them plots at cheaper prices and then forcing them to invest in other schemes before taking possession of the land.
Over 250 FIRs have been lodged against the company in various states, including Delhi, Rajasthan, Madhya Pradesh, West Bengal, and Bihar.
