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Heera Gold: After SC Order, ED To Auction 2 Properties of Nowhera Shaik
Moneylife Digital Team 14 November 2024
Economy & Nation
Following an order from the Supreme Court, the Hyderabad zonal office of the directorate of enforcement (ED) has initiated the process of restitution of properties belonging to Dr Aalima Nowhera Shaik, chairman of the controversial Heera Islamic Business Group, better known as Heera Gold to genuine investors.
 
In a post on X, the agency says, "This is following persistent plea taken by the ED before the Supreme Court for ensuring that substantive justice is met to investors who were duped in the fraudulent investment schemes of Nowhera Shaik and Heera group of companies."
 
 
On Monday, the apex court refused to give any relief on the bail plea filed by Ms Shaik and directed the ED to auction two of her properties, Naina Towers and Heera Foodex, which were deemed free from any encumbrance. 
 
In an order, the bench of justice JB Pardiwala and justice R Mahadevan says, "In such circumstances, we direct the ED to put both the properties to auction in accordance with the law. We are informed that this may take about three months' time before the entire proceedings are completed. We permit the ED to proceed further with the issuance of auction notice in accordance with law after fixing an offset price. The offset price shall be fixed after obtaining a report from a government-approved valuer."
 
According to a report filed by the ED, Naina Towers, located in Banjara Hills area of Hyderabad, has a fair market value of about Rs90.1 crore and a realisable value of Rs81.08 crore. Heera Foodex from Hydershahkot village in Ranga Reddy district has a fair market value of about Rs120.64 crore and realisable value of around Rs109.58 crore, the ED says.
 
The Supreme Court also directed Ms Shaik to deposit Rs25 crore within three months with the ED and furnish within two weeks full, correct and complete details of the other properties she owned, free from all encumbrances. The Heera group MD is also asked to surrender her two passports.  
 
"Once the information as regards other properties free from all encumbrances is furnished to the ED, it shall proceed further at the earliest to put those properties also to auction and try to recover the maximum amount so that ultimately whatever amount is fetched can be distributed amongst the investors," the SC says.
 
In August this year, the ED searched and seized Rs90 lakh in cash and 12 high-end cars and property documents worth Rs70 crore belonging to the Heera group of companies, Ms Shaik, her relatives and associates.
 
"Searches also revealed that investment of proceeds of crime in movable and immovable properties acquired by Ms Shaik in the UAE. Further, details of new investment schemes and projects launched by Ms Shaik in collusion with other co-conspirators to defraud investors and divert previously acquired proceeds of crime were unearthed during the search operations," the ED says.
 
Earlier, the ED had provisionally attached properties worth about Rs400 crore, which had been acquired from the proceeds of crime by Ms Shaik, Heera group of companies, and others. "Ms Shaik was earlier arrested by ED in this case and a prosecution complaint has also been filed before the special court (PMLA) at Hyderabad," it added.
 
Earlier in October 2018, Ms Shaik, who is accused of collecting money as deposits from thousands of Muslim people from several states, was arrested by the Hyderabad police. (Read: Heera Gold Chairman Nowhera Shaik arrested in Hyderabad)
 
Earlier, in July 2018, market regulator Securities and Exchange Board of India (SEBI) told Moneylife that the activities of Heera Gold, are in the nature of Ponzi or multi-level marketing (MLM) scheme.   
 
Replying to an email sent by Moneylife with videos of panicky investors, the market regulator's Hyderabad office wrote to say, "Upon examination into the matter, it was found that the activities of Heera Group are in the nature of Ponzi Scheme. Further, the nature of activities of Heera Group was also discussed in the meetings of State Level Co-ordination Committees (SLCC) of Andhra Pradesh and Telangana, which are headed by Chief Secretaries of the respective states. It was decided in the meetings of SLCC that the activities of Heera Group appear to be beyond the regulatory ambit of SEBI and RBI and the case would be taken up for investigation by relevant authorities such as CID-EOW, and Serious Frauds Office of India (SFIO). Accordingly, SEBI had already referred the case to CID-EOW, Enforcement Directorate, Commissioner of Police-Hyderabad."  
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