The Enforcement Directorate's Hyderabad zonal office has auctioned 23 attached immovable properties belonging to Nowhera Shaik, the Heera Group of companies, and related entities, generating approximately ₹159 crore. The proceeds are intended to facilitate repayment to investors allegedly defrauded in the Heera Group investment scam.
Massive Fraud Uncovered
According to the ED, its money laundering investigation revealed that the Heera Group allegedly collected over ₹5,978 crore from the public by promising returns exceeding 36% per annum. However, the group failed to repay even the principal amount, causing substantial losses to thousands of investors across the country.
Auction Conducted Under Supreme Court Orders
The auction was conducted on June 19 through the Metal Scrap Trade Corporation Limited, in compliance with directives from the Supreme Court. The properties were part of assets attached under the Prevention of Money Laundering Act, identified as derived from alleged proceeds of crime. The attachments were confirmed by the adjudicating authority under the PMLA.
Transparent Process for Victim Compensation
The ED stated that the auction was carried out transparently and competitively, with the proceeds to be used for restitution and repayment to genuine investors. The agency emphasized that this process advances efforts to compensate victims of the alleged fraud.
Legal Actions Against Nowhera Shaik
The ED noted that Nowhera Shaik failed to comply with Supreme Court directions during the investigation. Taking note of her conduct, the apex court cancelled her bail. Subsequently, the special court under PMLA in Hyderabad issued a non-bailable warrant on May 7. Acting on intelligence, ED officials arrested her in Gurugram on May 21 and produced her before the jurisdictional court, which remanded her in judicial custody.
Arrest of Personal Assistant
The ED also arrested Nowhera Shaik's personal assistant, Nazneen Ansari alias Abeeda, alleging her involvement in activities linked to the possession, use, and generation of proceeds of crime. Despite knowing the Supreme Court's directions, she allegedly obstructed the auction by preventing inspections and misrepresenting properties as untainted assets. Abeeda was also remanded in judicial custody.
Ongoing Investigation
The ED reaffirmed its commitment to the attachment, confiscation, and monetisation of proceeds of crime, ensuring restitution to defrauded investors in line with the law and Supreme Court directives. Further investigation is underway.
