Lucknow, May 2 (PTI) A special PMLA court here has declared Rashid Naseem, the main promoter of city-based Shine City Group, as a fugitive economic offender in a case linked to alleged fraud of Rs 800-Rs 1,000 crore against depositors, the ED said.

The court issued the order on April 30 under Section 12(1) of the Fugitive Economic Offenders Act (FEOA) of 2018, the federal probe agency said in a statement issued on Thursday.

The FEOA is aimed to bring to justice those people who have left India to evade the clutches of law after committing fraud with a benchmark value of at least Rs 100 crore.

With this order, the agency can now move to "confiscate" assets worth about Rs 128 crore that have been attached by it as part of a money laundering investigation against the company, its promoters and others.

The probe relates to a Prevention of Money Laundering Act (PMLA) case initiated after the ED took congisance of 554 FIRs registered by the Uttar Pradesh Police against Naseem and the Shine City group of companies.

"The FIRs alleged large-scale fraud wherein public funds of Rs 800-Rs 1,000 crore were collected through fraudulent real estate schemes and multi-level marketing with promises of high returns. The investors were ultimately cheated," the ED said.

Naseem, according to the agency, "deliberately" evaded the investigation, failed to appear despite issuance of summons, and ultimately absconded from India via Nepal and is currently residing in Dubai, UAE.

Despite issuance of a non-bailable warrant, a look out circular (LOC) , and a Interpol Red Notice, Naseem "refused" to return to India to face criminal proceedings, it said.

The agency, hence, filed an application seeking to get declared Naseem a fugitive economic offender under the FEOA.

The ED said the court declared Naseem an offender under the law as it concluded that he has left India to "avoid" criminal prosecution and being abroad he has refused to return to face legal proceedings.

"Rashid Naseem has been declared a fugitive economic offender and the confiscation proceedings for attached properties worth Rs 127.98 crore shall now proceed before the court as per law," the ED said.

The agency has attached assets worth Rs 127.98 crore as part of the money laundering probe and has filed four chargesheets till now.

With this order, a total of 15 people have been declared fugitive economic offenders by different courts, including liquor baron Vijay Mallya and diamond trader Nirav Modi. The agency has filed 24 such applications including against diamantaire Mehul Choksi who was recently arrested in Belgium. PTI NES DV DV

Fugitive economic offender designation triggers confiscation proceedings where a promoter absconds and refuses to return for prosecution The court applied the Fugitive Economic Offender Act to conclude that the promoter absconded to evade prosecution, ignored summons and warrants, and remained abroad despite a lookout circular and Interpol notice; that designation enables statutory confiscation proceedings against assets attached in the Prevention of Money Laundering Act investigation arising from multiple FIRs alleging large scale fraudulent fund raising.