Shine City President Arrested for Rs 1000 Crore Fraud in Real Estate Scam
Lucknow police arrest Shine City president for duping investors of over Rs 1000 crore in real estate scam, mastermind CMD Rashid Naseem absconding
Real Estate ScamShine CityLucknow PoliceFraudInvestment FraudReal EstateJul 15, 2024
The police investigation revealed that Gyan Prakash, along with the chief managing director (CMD) Rashid Naseem, had duped several home buyers of crores of rupees through various schemes, including a recurring deposit scheme, investment in luxury vehicles, and ornaments. However, their main venture was real estate, where they formed a land bank and cheated people by promising to give plots or houses against the invested sum.
The fraudsters collected public money and laundered it through various group companies, purchasing luxury flats in various apartments. To prevent authorities from attaching the properties, they authorized their associates to manage these flats, which were then transferred to a benami (proxy) person.
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, but Naseem is still absconding and is believed to have taken shelter in a Gulf country. The state government has announced a cash reward of Rs 5 lakh on his arrest.
The arrest is a significant development in the case, which had been pending for several years. The change in government in 2017 marked a turning point in the investigation, and subsequently, several accused were arrested.
Information
Shine City is a real estate firm that was launched in Kanpur, with several projects registered in the city. The company promised investors high returns on their investment, but ultimately duped them of their hard-earned money.
Aliganj police is a law enforcement agency responsible for maintaining law and order in the Aliganj area of Lucknow. The agency has been instrumental in cracking down on various scams and frauds in the region.
Frequently Asked Questions
How much money was siphoned off by Shine City president?
Over Rs 1000 crore
Who is the mastermind behind the Shine City scam?
Rashid Naseem, the chief managing director (CMD) of Shine City
How many cases were registered against Shine City?
554 cases of forgery, criminal breach of trust, and other counts
How many people have been arrested in the Shine City scam?
62 people, including Gyan Prakash Upadhya
What is the reward on Rashid Naseem's arrest?
Rs 5 lakh
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