SEBI confirms Heera Gold is a Ponzi scheme, says EOW, ED and SFIO probing the MLM
Moneylife Digital Team 18 July 2018
The Securities and Exchange Board of India (SEBI) has clarified that activities of Heera Islamic Business Group, better known as Heera Gold, are in the nature of Ponzi or multilevel marketing (MLM) scheme. However, since these activities are beyond the ambit of SEBI and Reserve Bank of India (RBI), the case has been referred to CID- Economic Offences Wing (EOW), Enforcement Directorate (ED) and Commissioner of Police in Hyderabad, SEBI said. 
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."
The email further says, “As the matter is presently being handled by Central Crime Station-Hyderabad, SFIO-Telangana, and Enforcement Directorate-Hyderabad”, the regulator has sent the videos forwarded by Moneylife to its Mumbai office to these respective agencies. SEBI has also "marked a copy” to the Reserve Bank of India which is the nodal office for State Level Coordination Committee. 
Earlier this month, Moneylife had pointed out the panic among investors of Heera Gold, headed by Dr Aalima Shaikh Nowhera (Nowhera Shaik). The trigger for people gathering to protest at Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities was the decision to 'share profit' once in three months instead of every month. 
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."
The controversial and shadowy group has specifically targeted the Muslim community with the promise of high returns and constant references to ‘Allah’ to project itself as a devout and god-fearing organisation. The panic among investors over the past weeks is due to delays in making payments and a change in the payout dates. Several media reports and investors say that its founder, Nowhera Shaik floated a political party, which lost badly in the recent Karnataka elections, which has led to its financial difficulties.
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. 
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. 
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Saqib Mohammed
5 years 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 the regulators take action soon and recover investors' money while it is still possible.
Momin khan
5 years ago
It's strange that Muslims are asking proofs on this platform whereas you people should be doing this to those standing on the pulpits of mosque and interpreting Islam on their whims. Qur'an is the logical book at the highest level but people using it to justify their nonsensical & illogical practices should be questioned first.

You guys don't need any clear proofs if you are asked to sit at the grave supplicating.
You guys don't need any clear proofs if you are asked to hate other sects
You guys don't need any clear proofs as long as you get money, there you don't care about halaal / haraam and clear evidences.
Hanafi/Salafi/Deobandi/Sunni/Shia - Do you have any proofs for establishing these divisions, anything from Qur'an or authentically traced prophetic traditions?
Sonuu Tilwani
5 years ago
Scam company
Msayeed Qazi
5 years ago
Now pl. Guide to people how they can receive back their investment amount.
Msayeed Qazi
5 years ago
Now pl. Guide to people how they can receive back their investment amount.
Nafees Equebal
5 years ago
Dear Moneylife, thanks for sharing the news written by you. It will be better if you share the link where SEBI has confirmed. If your talking about email, then I want to know how can any media access the government internal email. I am not confirming that this is wrong news but we should know that without any proof sharing something may be SIN in front of GOD.
Sucheta Dalal
Replied to Nafees Equebal comment 5 years ago
You need to understand basics of journalism and where we come from instead of posting immature suspicions. The email from SEBI was a direct response to us based on my query to the chairman. This is a well respected publication -- not a social media gossip site. So your questions and aspersions are without logic or basis.
Replied to Sucheta Dalal comment 3 years ago
Dear Sucheta Mam, i do respect you and your journalism a lot.
My humble request to you, can you please take an interview of so called Aalima Dr. Nowhera Shaikh and expose her.
Many of our community has invested blindly into this ponzi scheme and now they are crying as they are not getting any so called profit return since couple of year.
asif sayed
Replied to Sucheta Dalal comment 5 years ago
Dear moneylife...I found Ur ans Lille rude, angryly and somewhat not on track. Hope u GT my point.
Ather Moin
5 years ago
please furnish the Email content.
Sucheta Dalal
Replied to Ather Moin comment 5 years ago
read reply above
Vasant Kulkarni
5 years ago
Replied to Vasant Kulkarni comment 5 years ago
Very well said. All these Regulators , Bank Officials , Investigation agencies etc are hand-in-glove with these Professional Crooks who does not spare even the God and always swear in the name of Almighty to play with sentiments of innocent & gullible though Greed is the main factor. Do you remember Crooks & Cheats Deepak Sakharam Kulkarni , Hemanti Deepak Kulkarni , Shirish Deepak & Tanvi S Kulkarni , Anuradha Purandare etc etc who are all cooling heels in Yerwada Jail for running Ponzi Scheme. They have cheated retired people and robbed them of their livelihood. These Kulkarnis took money by projecting themselves to be Followers of Veer Sawarkar , Deity Saptashrungi Mata Vani , Ganpati etc and they even issued Coded Deposit Receiots on the back side of Photographs of Veer Savarkar , Vani Mata , Ganesh Ji , Laxmiji etc depending upon Amounts borrowed. These Crooks have Cheated their Famiky Members including own daughters & Son in Laws , Employees , Investors , Shareholders , Tax Dept etc.
Mohd.Tahir Sayed
5 years ago
It looks like people in SEBI has vested interest.Otherwise forwarding an email to CID and EOW was not a big deal for watchdog like SEBI
Replied to Mohd.Tahir Sayed comment 5 years ago
Well said Sir, we all know that.
They work for their selfish interest and pockets. Who cares about public. They're all crooks and have forgotten AAKHRAT.
mariyam khatib
5 years ago
Thank you Money Life for exposing the activities of HEERA GOLD
Replied to mariyam khatib comment 5 years ago
Money like is doing a great job and have exposed many crooks but they do not have Executive powers to punish crooks. May Allah continue to give them Strength & Taufiq to expose these Cheats and help the suffering Community. Unfortunately Politicians , Bureaucrats , Administrators , Law Enforcement agencies etc are equally corrupt with vested interests.
Shaikh Farukh
5 years ago
Company Law Board must take action against the company as company has collected deposit from the public at large.
Replied to Shaikh Farukh comment 5 years ago
Sir , Dont expect miracles from Regulators & law enforcement agencies as they're hands-on -gloves with crooks and perpetrators. What they're doing is all HARAM.
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