Heera Gold investors panic over late payments and lack of answers about delays
Investors of Heera Islamic Business Group, better known as Heera Gold, are in a panic over payment delays and rumours about financial difficulties faced by the group, which has amassed vast sums of money by specifically targeting the Muslim community by invoking the name of “Allah” in its sales pitch. The trigger for people gathering to protest at Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities is the decision to 'share profit' once in three months instead of every month. But that is not the only issue.
 
Videos sent to us show that officials at Heera Gold's corporate office at Hyderabad refused to meet people and had locked the office from outside while staying inside. The controversial group is under investigation by the Enforcement Department and the Serious Frauds Office of India (SFIO) for several years, but the community continued to be lured by the high monthly returns offered by its Ponzi-like business. 
 
 
Interestingly, the group is headed by Dr Aalima Shaikh Nowhera (Nowhera Shaik), Chief Executive of Heera Group, who investors say is no longer in India. Typical of Ponzi operations that are in trouble, she has released a video to allay fears of investors and run down critics and those who are panicking at the payment delays. Source say that its immediate financial troubles follow its foray into politics. In 2017, Dr Shaik, CEO of Heera Gold formed the All India Mahila Empowerment Party under the banner of justice for humanity. This party even contested 221 out of the 225 seats in the recently concluded Karnataka Assembly elections with a 'diamond’ as its symbol. It is rumoured to have lost large sums of money. This and other rumours has triggered panic among people who want their money back. 
 
 
Heera Group claims to be a gold trading company with business all over the world. In the past four years, the lack of any enforcement action by investigation agencies has allowed it to grow rapidly and diversify into diverse business. In the past two years Moneylife has raised the issue of Heera Gold's Ponzi operations with two SEBI Chairman — Mr UK Sinha as well as Mr Ajay Tyagi — because it operated like a vast collective investment scheme. Neither of the two SEBI chairmen bothered to respond.  Our communication we said, "We hope SEBI will take note of this and hasten action so that people do not end up losing money. Many women too are being conned into borrowing against property to invest in these companies on the claim that the returns would be significantly higher than the interest they would pay on their loans."
 
 
Investigations and information  by a premier government agency, perused by Moneylife, claim that Heera Gold is involved in hawala activities. The note lists various actions against the group. For instance, on 17 May 2014, the Hyderabad Police apprehended six accused, while Heera Group promoter, Dr Shaik was named an absconding accused. Subsequently, on 21 May 2014, the Enforcement Directorate (ED) searched Heera Group premises and seized documents pertaining to the illegal transfer of money through hawala.
 
Earlier, in August 2012, Asaduddin Owaisi, Member of Parliament (MP) from  Hyderabad, had reportedly registered a case against Dr Shaik for cheating a large number of local investors from his constituency.
 
The Heera Group began its operations in 2010 and since then, claims to have created 25 legal entities. Of these, only 10 were found to be registered on Registrar of Companies (ROC), Hyderabad and only four are found to have filed Balance Sheets (FY2012-13), which are being analysed. It is not registered under FCRA, says a government source.
 
A large number of PAN, TIN and other State-level registration numbers are shown on its website and are under ED and State Police investigation. These 10 companies have two sisters as Directors, namely Dr Shaik and Mubarak Jahan Shaik. The third Director (in only three companies) is another woman named Khamar Jahan Shaikh.
 
The Group claims to operate through over 19 companies in various business sectors, like gold trading, trading, textile, jewellery, mineral water, granite, tours and travels, developers, electronics, Hajj and Umrah services among others. Heera Group claims to have its offices in Dubai, Saudi Arabia, Canada, China and Hong Kong. It markets itself as a trader in gold products and gold dust.
 
Heera Group has deep ties with politicians from Andhra Pradesh, which may have allowed it to flourish and expand investor network across the country. In December 2017, its central office at Hyderabad was inaugurated by Mohammed Mahmood Ali, Deputy Chief Minister of Telangana.  
 
 
Several film personalities are also seen hobnobbing with Dr Shaik on Heera Gold platform during its functions (https://youtu.be/o5YK6A4eW-Q?t=1h2m54s).  
 
Few days ago, several investors from Hyderabad, Mumbai, Pune, Aurangabad from Maharashtra and Karnataka reached Heera Gold's central office at Hyderabad. They wanted to know why there was change in the payout scheme. However, instead of responding to issues raised by investors, the staff at Heera Gold closed office doors from inside. 
 
 
Galli News from Hyderabad have also raised several questions on Heera Gold change in payouts. Here is the video from Galli News…
 
 
Earlier this week, Hyderabad-based Shahbaz Ahmed Khan, who is vocal critic of Heera Gold's business model had filed a complaint alleging life threats from Dr Shaik. Speaking with The Hans India, Khan had said that ever since he started questioning about the ‘dubious’ nature of the business which offers investors a monthly return of Rs3,000 per Rs1 lakh, he has been facing life threat from the business woman-turned-politician. “At least three investors have approached me to help them. Hence, I request the police department to enquire into the businesses of the Heera Gold. For the past eight years, I have been facing threat from the woman,” Khan was quoted as saying in the report.   
 
 We tried to call the company at several numbers listed under an address at Banjara Hills, Hyderabad on its website but they were all unreachable. The Heera Gold complaints board reveals that most of the financial problems and delays in crediting interest/profit share have started in the past 3 or 4 months. Until then the board was inundated with questions about how to invest in the group
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    COMMENTS

    Saqib Mohammed

    10 months ago

    There are many other ponzi schemes very similar to Hera. One such scheme is IMA - I monetary advisory which also brands itself as halal and risk free investment to lure muslims. Hope moneylife is exposing the other scams and the regulators are taking action soon to recover investors' money while it is still possible.

    Sajid Syed

    11 months ago

    Salaam to everyone who is reading, now my question is how can we come out of this means how we will get our investment Back what is the solution and whom do we have to right and speak so that our money should not be big time gone.

    Syed Mubashir

    11 months ago

    Salam Every body here.
    Alhamdulillah by the grace of almighty allah swt. i have received my benefits on 06-09-2018 from Heera Foodex. i am very much happy and thanks allah for the end of all the bad rumours circling around the investors.. more over i have already chk with some of my friends and reletives and they didnt receive i am the lucky one to have it in 1st week of this month and hope all the investors will get their benefits by the end of this month. the only query in my mind is i have invested 4 lacs in april and waiting for may,june july as they said 3 months but i receive 22788 i just inform one of my relative to go and check about this amount......

    REPLY

    Amjad Khan

    In Reply to Syed Mubashir 11 months ago

    As salaamu Alaikum...its a miracle brother...because on one has received yet. It would be helpful if you could share some proof of payment...still question in mind that you might be writing on behalf of Heera ...Jazakallah..

    Cropped Bank statement would be helful and will be a source of peace for other investors.

    mi so

    12 months ago

    This is nothing but a repeat of the Jayalitha and her secretary story. It remains to be seen if Nowhera will be murdered by her own secretary. Molly has been hired by the politicians to funnel out all of the money from Heera Gold into their hands ! Do an investigation on Molly and you will find out all the truth you need to about Heera Gold.

    mi so

    12 months ago

    My 100% suspicion is that Nowhere Shaikh is held under house arrest or kidnapped by her own secretary Molly who has a very suspicious background. Molly used to work in the US in virginia. She left her job and took up a Nanny job at Nowhere Shaikh's house to take care of the former's adopted child. Now who in their right mind would leave the US to work as a Nanny in India. Not only this, she won Nowhere Shaikh's trust to such an extent that Molly had her husband and son managing the call center for Heera Gold. That call center has vanished. Then Molly started taking the front seat in all the business decisions and I have been told by a person who was doing a gold deal with Heera Gold, that the deal did not go through because Molly wanted a higher commission !!!!! Can you believe that a woman who is working at the level of Nanny can run a call center business and negotiate gold deals. Slowly, as she took hold of all of Nowhera's cell phones and email access and nobody was able to reach Nowhere. Now I do not know if Nowhere has been murdered. Molly started transferring all bank accounts to Kerala, because she is from Kerala and can have a good hold on the bankers. Every month investors were given new bank accounts because Molly was changing banks left and right. Now I hear rumors that the money has already been transferred out of the country. It will not be long because Molly vanishes, either leaving Nowhere to reap for her sins. I have personally talked to Molly and found her to be a psysopath liar.

    Noormohamed Kazi

    1 year ago

    This group united all. Think?? Real time to support. No benefits can go if its in your destiny. Dont be a prey to the medias. Be united. Rizk is in Allaahs hand only.

    REPLY

    sajid shaikh

    In Reply to Noormohamed Kazi 11 months ago

    On any other day I would have agreed with you 100%. But at this time with Heera group behaving like fraudsters and ponzi owners, your words are hurting. Sorry about that. Allah please prove me wrong in my thoughts.

    But whatever I have observed and read in the past few months( including conversations with heera group people Molly and others), I have a strong feeling that people have lost their money

    shafi qureshi

    In Reply to Noormohamed Kazi 1 year ago

    Assalam walaikum.
    You are absolutely right my brother, this group has United all the people. We should stay United otherwise peoples are mastered their skills in divide and rule policy. After all rizk is in Allah's hand.

    SUBHASH CHATTERJEE

    1 year ago

    Hope the investors get their money back. Ala,though time and again people have been cheated still the lure of high returns lead people to invest in such schemes. It is always proper to first investigate about the company and then invest

    Shaikh Farukh

    1 year ago

    Basically Heera Gold is Ponzi Company. The company management has collected crores of Rupees by making fool to the people. Even the company has grossly broken the law of land as under:-
    1. As Pvt Ltd company cannot accept deposits from peoples, still company accepted deposits.
    2. The company was paying per month 3% fixed return on investment and that too without TDS.
    3. In ROC filing company has never shown correct deposits figures and figures of turnover.

    Huzefa Kazi

    1 year ago

    Mrs Dalal, I also call up hyd office call center and they did receive my call. They say that there are banking transaction limits set by banks after Nirav Modi episode, and there are issues related to GST calculation every month. Hence to reduce number of transactions, they have decided to change the terms & conditions and distribute profits every quarter instead of every month. Can you confirm if this is true and there are any transaction limit set by banks for transactions every day/month.

    REPLY

    Veeresh Malik

    In Reply to Huzefa Kazi 1 year ago

    Why not call up or write to Reserve Bank of India or to the bankers in question? Answer is simple - if you are doing legit business, then there is no limit to the number of transactions, nor is filing GST a problem. Good luck with your savings.

    Qadeer Ahmed

    1 year ago

    Government of India should investigate this case with CBI so that every thing will be out and can safe innocent people...

    Shankar g

    1 year ago

    Mintvest.......a 'smart investement' company luring gullible senior citizens/Public in advertising enmasse offering18% rate,montly. ON speaking to them, how they could give this much, it is being told, they offer Bridge loans /Under write loans of Banks, by lending the Banks and the companies who are offered loans. Lot of door to door canvassing is undergoing mainly targetting seniors , in Chennai..Needs probing

    Mohd.Tahir Sayed

    1 year ago

    It will be tragic if the hard earned money of the common people is lost on such Ponzi schemes. Thank you Team MoneyLife for educating us about such frauds which occur in regular intervals.

    Wealth managers cannot survive by delivering standardised experiences to clients: Report
    Many wealth managers struggle to maintain their top-line margins despite strong growth in personal financial wealth and assets under management. But they can help reverse this trend-and strengthen their competitive position-by using advanced analytics to better address clients' individual needs and by adopting smart revenue practices to generate new pools of opportunity, says a study report.
     
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    BCG feels firms that deliver smart, individualized products, services, and prices-digitally and through a relationship manager or financial advisor-will significantly bolster their top-line growth and occupy a differentiated position in the market. It says, "Seizing this opportunity requires deployment of cutting-edge capabilities in advanced analytics-encompassing such elements as new technology platforms, fresh development capacities, next-generation tech and data architectures, updated data and digital organizational structures and skills, and improved access to internal and external data. A full transformation along these lines can lead to top-line growth of 15% to 30% and drive efficiency gains of 10% to 15%". 
     
    "The stakes for wealth managers can be enormous," says Anna Zakrzewski, a BCG partner, global leader of the firm's wealth management segment, and co-author of the report. "And many players have already undertaken efforts in these areas. But realizing the full opportunity will require fundamental changes across the entire organization. We expect leading firms to further separate themselves from the pack over the next few years, a gap that will be increasingly difficult for slow-moving players to close," she adds.
     
    Unleashing the Value of Advanced Analytics
     
    BCG research suggests that over 70% of wealth management clients see highly personalised service as a key factor in deciding whether to stay with their current provider or switch to another. 
     
    "The stakes for wealth managers can be enormous. And many players have already undertaken efforts in these areas. But realizing the full opportunity will require fundamental changes across the entire organization. We expect leading firms to further separate themselves from the pack over the next few years, a gap that will be increasingly difficult for slow-moving players to close," Zakrzewski says.
     
    The Evolution of Personal Financial Wealth
     
    According to BCG, during 2017, global personal financial wealth grew by 12% to $201.9 trillion. This expansion more than doubled that of the previous year, when global wealth rose by 4%, and represented the strongest annual growth rate in the past five years in dollar terms. 
     
     
    "Main drivers were the bull market environment in all major economies-with wealth in equities and investment funds showing by far the strongest growth-and the significant strengthening of most major currencies against the dollar. In general, developed markets held a higher share of wealth in non-investable assets-particularly pension fund entitlements-than developing markets. The Middle East accounted for the highest share of wealth held in investable assets, while residents of Oceania had the lowest share. The share of global wealth held by millionaires increased to almost 50% in 2017, compared with just under 45% in 2012. If recent patterns of wealth expansion continue, under an optimistic scenario, personal financial wealth could rise at a compound annual growth rate of around 7% from 2017 to 2022," the Report says.
     
    The Offshore Perspective: Swiss magic continues 
    The amount of global offshore wealth held in 2017 was around $8.2 trillion, 6% higher than the previous year. Switzerland remained the largest offshore centre, domiciling $2.3 trillion in personal wealth in the country. The next-largest booking centres were Hong Kong ($1.1 trillion) and Singapore ($0.9 trillion), which have grown at yearly rates of 11% and 10%, respectively-more than three times the rate (3%) of Switzerland over the past five years. 
     
     
    According to the Report, net offshore inflows from 2012 through 2017 totalled over $800 billion, with Hong Kong and Singapore the key destinations. At the same time, some offshore centres, notably the Channel Islands and the Isle of Man, saw net outflows during the same period.
     
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    Bridging the Revenue Gap 
     
    According to BCG industry data gathered from more than 150 wealth managers, top performers-defined as the quartile of institutions with the highest pre-tax profit margins-achieved a significant lead over average performers in overall revenue growth and return on assets (RoA) over the past three years. They also enjoyed a cost edge, although this was much less pronounced than the RoA advantage, implying that the prime driver of higher profit margins resides on the revenue side, the report says. 
     
    BCG estimates that wealth managers can achieve a revenue uplift of 8% to 12% by adjusting price levels, correcting unnecessary discounts, and simplifying overall pricing structures. It says, "Product and service bundling can contribute to higher revenues if properly linked to the pricing architecture and to the value proposition for each client segment. Overall, smart revenue practices can accomplish the dual goal of increasing the top line and enhancing client satisfaction".   
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    Sahara failed to deposit money, Aamby Valley auction to continue: SC
    The Supreme Court on Wednesday said the process for the auction of Sahara's Aamby Valley project in Maharashtra will continue after the group failed to deposit Rs 750 crore in the SEBI-Sahara Refund Account.
     
    The order by a bench of Chief Justice Dipak Misra, Justice Ranjan Gogoi and Justice A.K. Sikri came after the official liquidator said that the Sahara Group has not deposited Rs 750 crore in the refund account.
     
    Posting the matter for July 12, the bench said: "As far as the auction of the property is concerned, the same shall continue as the contemner has failed to deposit Rs 750 crore, as suggested by him earlier."
     
    The bench on April 19 had said that the group had time till May 15 to sell its property and if it fails to do so, the Bombay High Court's official liquidator will proceed with the proposed auction process to sell the same.
     
    Spread over 8,900 acres, the Aamby Valley property is to be sold by splitting it into saleable parcels of land as there were no takers for the purchase of the entire real estate project.
     
    In its report, the official liquidator had earlier said that the procedure for auctioning the Aamby Valley property has commenced and bids will be invited from May 21 to 31 whereas the auction will begin from June 2.
     
    Earlier, the top court directed for the auction to recover money the Sahara Group has to pay to market regulator Securities and Exchange Board of India (SEBI) for returning investors' money that its two companies SIRECL and SHICL had raised in 2007 and 2008.
     
    The Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) had raised Rs 24,000 crore through optionally fully convertible debentures.
     
    The top court, by its August 31, 2012, order directed Sahara to refund this amount along with 15 per cent interest.
     
    The group has already given a part of the money to SEBI, that is parked in the SEBI-Sahara Refund Account.
     
    On August 10, 2017, the apex court declined the plea of Sahara chief Subrata Roy to put on hold the auction of Aamby Valley and allowed the liquidator to go ahead with the auction.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User

    COMMENTS

    Shaikh Farukh

    1 year ago

    Basically Heera Gold is Ponzi Company. The company management has collected crores of Rupees by making fool to the people. Even the company has grossly broken the law of land as under:-
    1. As Pvt Ltd company cannot accept deposits from peoples, still company accepted deposits.
    2. The company was paying per month 3% fixed return on investment and that too without TDS.
    3. In ROC filing company has never shown correct deposits figures and figures of turnover.

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