The directorate of enforcement (ED) has arrested Heera group founder Nowhera Shaik in connection with an alleged ₹3,000 crore investor fraud case involving more than 172,000 depositors across India.
Ms Shaik was arrested on 21 May 2026 in Gurugram under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and was subsequently brought to Hyderabad, where she was produced before the special PMLA court later that night. The court remanded her to judicial custody.
According to the ED’s Hyderabad zonal office, the arrest follows years of investigation into the Heera Group and related entities over allegations that investors were lured into depositing money with promises of extraordinarily high returns of around 36% annually.
ED said the money laundering investigation was initiated based on multiple first information reports (FIRs) registered by Telangana Police and Andhra Pradesh Police against Ms Shaik, Molly Thomas, Biju Thomas and Heera Group companies, following complaints from depositors across the country.
Investigators alleged that Ms Shaik collected deposits from 172,114 investors by promising lucrative profits through investments in Heera Group companies, but later failed to repay either the promised returns or the principal amounts.
According to ED, the deposited funds were allegedly diverted from company bank accounts into personal accounts and subsequently used to acquire movable and immovable assets.
The agency said it had identified multiple properties allegedly purchased using proceeds of crime and attached them under the provisions of the PMLA.
The case also witnessed prolonged legal battles before the Supreme Court. According to ED, Ms Shaik filed petitions before the apex court and allegedly attempted to derail the investigation by presenting incorrect facts and misleading affidavits.
ED alleged that she claimed before the Supreme Court that one CK Moula Sharif was prepared to purchase the attached properties worth ₹580 crore and submitted bank-related documents in support of the claim. However, the Court later observed that the individual did not possess the funds claimed in the bank account mentioned in the affidavit and consequently ordered contempt proceedings against him.
Investigators further alleged that Ms Shaik illegally sold certain ED-attached properties by filing false affidavits before revenue authorities, generating additional proceeds of crime. Separate FIRs were subsequently registered in connection with those transactions.
ED said it repeatedly informed the Supreme Court about these developments through status reports, following which the apex court took a serious view of the matter.
In a major development, the Supreme Court permitted the ED, for the first time in this matter, to auction attached properties before completion of trial and confiscation proceedings under the PMLA so that investor money could be returned through the serious fraud investigation office (SFIO).
The apex court also directed Ms Shaik to cooperate with the ED in the ongoing auction proceedings and execute sale deeds for properties registered either in her name or in the names of associates allegedly using proceeds of crime.
ED stated that auction proceedings had already resulted in the successful sale of certain properties, fetching around ₹122 crore. However, the agency alleged that Ms Shaik repeatedly refused to cooperate in the execution of sale deeds for auctioned properties and attempted to obstruct the process.
The agency again approached the Supreme Court which, on 8 April 2026, directed Ms Shaik to surrender before jail authorities within one week and execute sale deeds for 16 auctioned properties within two months. The court also warned that failure to comply could result in the issuance of a non-bailable warrant and cancellation of bail.
According to ED, she failed to surrender before jail authorities despite the Court’s directions.
The agency subsequently moved the special PMLA court seeking cancellation of her bail and issuance of a non-bailable warrant. During those proceedings, ED alleged that Ms Shaik filed an affidavit stating that she had attempted to surrender before jail authorities in Hyderabad but was refused custody.
However, after verification, jail authorities informed the court that she had never approached them for surrender.
The special PMLA court thereafter examined the matter in light of the Supreme Court’s 8th April order and, taking note of what it described as misleading conduct, issued a non-bailable warrant against her on 7 May 2026 and cancelled her bail.
ED said its officials subsequently conducted searches at known locations in Hyderabad and Bengaluru but found that she was allegedly absconding to evade arrest.
Investigators later developed intelligence inputs indicating that Ms Shaik was hiding in Gurugram under a fake identity using forged documents. According to ED, she was staying with her associate, Sameer Khan, at an Airbnb property called Salt Stayz in Sector 45, Gurugram.
Acting on the intelligence, ED officials, along with Haryana Police, conducted a joint operation and apprehended her on 21 May 2026.
The agency alleged that she was using an Aadhaar card issued in the name of ‘Shaik Khamar Jahan’ while staying at the property.
ED also revealed that earlier this year, it had arrested one Kalyan Banerjee from Secunderabad on 10 January 2026 for allegedly attempting to interfere in the auction of attached properties. According to investigators, he was allegedly impersonating an advocate and claiming close links with senior bureaucrats and politicians to influence ED officials.
The agency said the arrest of Nowhera Shaik demonstrates that attempts to evade legal proceedings, obstruct investigations or interfere with auction proceedings meant for restitution to victims would be dealt with strictly under the law.
Further investigation into the case is continuing.
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