Real Estate Fraud: Shine City President Arrested for Siphoning Off Rs 1000 Crore from Investors
Shine City president arrested for fraudulently taking over Rs 1000 crore from investors in Lucknow, police crackdown on real estate scam
Real Estate ScamShine CityFraudInvestorsLucknowReal Estate NewsJul 15, 2024
The accused, along with chief managing director (CMD) Rashid Naseem, had allegedly duped several gullible home buyers of crores of rupees. The scam first surfaced in 2013, and since then, as many as 554 cases of forgery, criminal breach of trust, and other counts were registered at different police stations in Lucknow. A total of 62 people have been arrested in connection with the case, while Naseem is still absconding and believed to have taken shelter in a Gulf country. The state government has announced a cash reward of Rs 5 lakh on his arrest.
According to DCP North Abhijeet R Shankar, the company launched several projects, all registered in Kanpur, including a recurring deposit scheme offering triple the amount of money invested, an investment in the name of luxury vehicles to get an attractive profit, and several others. The fraudsters also made people invest money in ornaments. However, their main venture was real estate. They formed a land bank and cheated people by promising to give plots or houses against the invested sum.
The accused collected public money, laundered it through various group companies, and purchased luxury flats in various apartments. To prevent authorities from attaching the properties, the realtors authorised their associates to manage these flats. The associates then transferred the property to a benami (proxy) person.
Sources revealed that the owner had succeeded in fending off any legal action in connivance with the local police. However, with the change in government in 2017, the noose around them tightened, and subsequently several of them were arrested.
of Shine City Shine City is a real estate firm that had launched several projects in Lucknow and Kanpur. The company had promised to provide plots and houses to investors, but instead, used their money to purchase luxury flats and other assets.
Frequently Asked Questions
What is the amount of money allegedly siphoned off by Shine City?
Over Rs 1000 crore
How many cases have been registered in connection with the scam?
554 cases of forgery, criminal breach of trust, and other counts
How many people have been arrested in connection with the case?
62 people
What is the main venture of Shine City?
Real estate
What is the cash reward announced by the state government for the arrest of Rashid Naseem?
Rs 5 lakh
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