Woman Arrested In Probe Against Lucknow Firm For Duping Investors Worth 1000 Crore

The Enforcement Directorate (ED) arrested a woman on Saturday in connection with a money-laundering probe against a Lucknow-based company for allegedly duping investors to the tune of Rs 800-1,000 crore.

Shashi Bala, who was actively assisting Rasheed Naseem, the main accused in the Shine City fraud, has been taken into custody, the central agency said in a statement.

Naseem is on the run, it added.

A special court dealing with cases lodged under the Prevention of Money Laundering Act (PMLA) has sent the accused to the ED's custody till November 30, it said.

Shashi Bala was "actively assisting" Naseem in concealing and laundering the proceeds of crime, the agency said.

A confidante of Rasheed Naseem, Shashi Bala was in constant touch with him and customers through WhatsApp and was continuously involved in money laundering till the time searches were carried out by the agency, the ED said.

The action was taken after the agency conducted raids at 18 locations in Lucknow, Varanasi, Mumbai, and Delhi on Friday at the residences of agents who worked for Shine City to "lure investors and helped in the generation of proceeds of crime".

The money-laundering case stems from as many as 250 FIRs registered by the Uttar Pradesh Police against Naseem and the Shine City group of companies for allegedly collecting approximately Rs 800-1,000 crore from the public in the name of investment and subsequently, committing fraud.

"The searches were also conducted at the residence and office premises of directors and companies to whom huge amounts of proceeds of crime were transferred by Rasheed Naseem, the main accused, and the Shine City group of companies in the garb of investment and advances.

"These operations resulted in the seizure of several digital devices, incriminating documents regarding continuous involvement of some persons in the act of money laundering, immovable properties, cash of Rs 95 lakh, and jewellery worth Rs 65 lakh," the ED has said.

The agency's probe has found that several agents, who have worked or have been working for Shine City, lured investors and helped the company and its promoters generate proceeds of crime.

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