SEBI confirms Heera Gold is a Ponzi scheme, says EOW, ED and SFIO probing the MLM
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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COMMENTS

Saqib Mohammed

2 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 the regulators take action soon and recover investors' money while it is still possible.

Momin khan

3 months 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

3 months ago

Scam company

Msayeed Qazi

4 months ago

Now pl. Guide to people how they can receive back their investment amount.

Msayeed Qazi

4 months ago

Now pl. Guide to people how they can receive back their investment amount.

Nafees Equebal

5 months 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.

REPLY

Sucheta Dalal

In Reply to Nafees Equebal 5 months 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.

asif sayed

In Reply to Sucheta Dalal 3 months ago

Dear moneylife...I found Ur ans Lille rude, angryly and somewhat not on track. Hope u GT my point.

Ather Moin

5 months ago

please furnish the Email content.

REPLY

Sucheta Dalal

In Reply to Ather Moin 5 months ago

read reply above

Vasant Kulkarni

5 months ago

OPERATION SUCCESSFUL PATIENT DIED, IS THE FATE OF OUR REGULATORS.

REPLY

Ezeelok

In Reply to Vasant Kulkarni 5 months 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 months 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

REPLY

Ezeelok

In Reply to Mohd.Tahir Sayed 5 months 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 months ago

Thank you Money Life for exposing the activities of HEERA GOLD

REPLY

Ezeelok

In Reply to mariyam khatib 5 months 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 months ago

Company Law Board must take action against the company as company has collected deposit from the public at large.

REPLY

Ezeelok

In Reply to Shaikh Farukh 5 months 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.

CBI quizzes another ex-Tripura minister in chit fund scam
Agartala, The CBI on Thursday questioned another former Left Front minister in Tripura and his two ex-private secretaries in connection with the Kolkata-based Rose Valley chit fund scam case.
 
Former Finance, PWD and Health Minister Badal Chowdhury was questioned by two Central Bureau of Investigation (CBI) officials at the MLA Hostel here for about two hours. 
 
On Wednesday, the CBI questioned former Left Front Minister Bijita Nath on the issue.
 
"The CBI is collecting facts from different states as part of their probe into the Kolkata-based Rose Valley chit fund scam. So they also spoke to Nath and Chowdhury," the former minister's lawyer said on condition of anonymity.
 
After questioning, Chowdhury told the media: "The officials wanted to know some information from me for the period of 2004 and 2008. I replied accordingly."
 
The CBI officials refused to talk to the media.
 
The two former ministers said they would cooperate with the CBI to probe the chit fund related cases as they wanted the accused to be punished and people to get back their deposits.
 
On Thursday, two former private secretaries of Badal Chowdhury -- Sekhar Datta and Manik Lal Dey -- were questioned at the CBI office here.
 
The CBI in June 2017 questioned Nath and Communist Party of India-Marxist (CPI-M) central committee member Gautam Das in connection with the Rose Valley chit fund scam.
 
CPI-M leader Bijan Dhar said: "No CPI-M leader and former Left Front ministers were involved with any chit fund organisations."
 
The Bharatiya Janata Party (BJP), Congress and the Trinamool Congress (TMC) separately charged the previous Left Front government with promoting illegal chit fund organisations and unauthorised Non-Banking Financial Organisations (NBFCs) in Tripura.
 
The erstwhile Left Front government in Tripura had enacted a law in 2000 to deal with the illegal NBFCs and chit fund organisations and since 2016 began confiscating all movable and immovable properties of the Rose Valley chit fund organisation in the state.
 
The chit fund organisation -- Rose Valley -- is now under the scanner of the Enforcement Directorate and the CBI. Its sole proprietor and Chairman Gautam Kundu was arrested in Kolkata in 2015.
 
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.

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COMMENTS

Lohith S

2 months ago

Hi,
My self Lohith from Bangalore..
I have opted to quit the business. Hence there is no point of Next year V Con.
have written several times emails to [email protected] and [email protected] but there is no response. All the peoples who have done the booking are not helping and not taking calls now.
Please help to get contact number of right person to request for refund of my tickets booked.
Regards,
Lohith
9741745123

Sonuu Tilwani

3 months ago

https://m.timesofindia.com/city/mumbai/2-directors-of-firm-held-in-rs-4500-crore-ponzi-fraud/amp_articleshow/65747002.cms


You all can comment here as well on FB .....who all are scammed pls do the needful

vamique sayed

4 months ago

This is a ponzi scheme.. I knew it more than a year ago when I heard about it.But in spite warning people they invested and are now repenting. Government is largely to be blamed for turning a blind eye to this for years.

Blundering in Finance
Rahul Dravid, nicknamed The Wall, is a legend for his studied and meticulous approach to the game of cricket—as a player, captain and coach. Prakash Padukone had a similar reputation. Wouldn’t you expect them to show the same approach to their hard-earned savings? So imagine our shock to find that Rahul Dravid was duped of Rs4 crore by a ponzi scheme, peddled to him by a sport journalist, Sutram Suresh, who clearly had his trust. Isn’t that like going to a dance class to learn cricket? Would Mr Dravid or Mr Padukone have made that mistake? 
 
The key to this strange decision is in the quote by a police source reported by various newspapers. It says, the scheme promised a return of 30% to 40% and that made all the difference. Among the other victims was young Saina Nehwal, who had once said that her father handled her finances and invested them in insurance. As it happens, the journalist who conned these sports stars was also an insurance agent. 
 
His company has allegedly scammed 800 people of around Rs300 crore and, on Mr Dravid’s complaint, scamster Raghavendra Srinath, the journalist Suresh, and many others have been arrested. But will the money come back? It rarely does, in ponzi schemes. 
 
Anyone who has attended a Moneylife seminar knows our simple rule of thumb: if someone offers you a fixed-income return that is 3% above that of a bank term deposit, it is a red flag. Gifts and pass-backs from distributors/agents are also a red flag. We also say that the trick to luring people into a ponzi scheme is to make quick initial payments of the high returns that are promised. Here, too, Mr Dravid says that the scamster paid the promised returns, initially, but stopped paying after 2017. But that is exactly how ponzi schemes work. Strangely, Mr Dravid is related to luminaries in the financial world, but has apparently not bothered to seek guidance on investment. 
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COMMENTS

Ashok Senniappan

8 months ago

Money is one of the most dangerous instrument thart if not handled properly
one will be pushed into the black hole.

Bapoo Malcolm

8 months ago

There was a time, in the 50s and 60s in Europe, when professional cyclists had a lot of money; compared to other sports. The investment of choice was restaurants and cafes. A la Tendulkar. Most lost a lot of money. The guys were not used to 24/7 attention to the business. Novelty, of shaking hands with the greats, would soon wear off, fewer footfalls would follow. There is a saying in Gujrati, "Kheti atelay paisa ni nyaast, Jaray kheydoot nahin hoy paas". Translated, Farming is money down the drain, When the farmer is not omnipresent. Entrusting money to salesmen, hoping for unearned fortunes, is the surest way to calamity. Obviously, The Wall did not take proper guard! Sad.

Salman Usman Qazi

8 months ago

3% fixed-income return is for a month or a year?

REPLY

Abhishek Singh

In Reply to Salman Usman Qazi 8 months ago

3% over FD rate...

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