In a landmark ruling, the Telangana High Court on Thursday imposed a staggering fine of Rs 5 crore on Nowhera Shaik, the director of the Heera Group of Companies, before dismissing her petition that sought to halt the Enforcement Directorate's scheduled auction of her properties. The court termed her plea an attempt to circumvent established law.
Record Fine for Misusing Judicial Process
Justice Nagesh Bheemapaka, who heard the case, directed Nowhera Shaik to deposit the Rs 5 crore fine into the Prime Minister's National Relief Fund within eight weeks. Legal experts indicate that this is the highest cost ever imposed on a petitioner in the history of the high court, a record that includes the period of undivided Andhra Pradesh.
The judge expressed strong disapproval of the petitioner approaching the High Court for relief after the Supreme Court had already cleared the path for the auction. Justice Bheemapaka questioned why she was seeking a stay when the matter had reached finality in the apex court, which had explicitly stated that the ED should proceed with the attachment and auction of all properties owned by the accused "in accordance with the law."
Petitioner's Arguments and Court's Rebuttal
Nowhera Shaik, who faces allegations of orchestrating a massive investment scam worth over Rs 5,000 crore and duping thousands of investors across Telangana, Andhra Pradesh, Maharashtra, and other states, had challenged the auction on multiple grounds.
Her legal team argued that the auction proceedings were illegal and violated the Prevention of Money Laundering Act (PMLA) because no formal confiscation order had been obtained from a special PMLA court. She further contended that the bidding prices were set significantly below market value, causing "irreparable loss" to the company and its depositors. Another claim was that the confirmation of property attachments occurred in mid-2025 while she was incarcerated and unable to represent her side, violating principles of natural justice.
Dismissal and Finality of the Case
Justice Bheemapaka remained unconvinced by these arguments. The court noted that the petitioner's counsel failed to provide satisfactory responses to queries regarding the persistence in litigating a matter already settled by the Supreme Court. Labeling the petition a "misuse of the judicial process," the judge dismissed the plea outright.
The Enforcement Directorate's auction of 59 properties linked to Nowhera Shaik is scheduled for December 26. With this decisive order, the legal roadblocks appear to have been removed, allowing the probe agency to proceed with the sale as part of its efforts to recover funds in the alleged multi-crore scam.
