The Enforcement Directorate (ED) has uncovered a massive Ponzi scheme that primarily targeted Muslims adhering to sharia law, which prohibits earning interest on investments. The perpetrators lured unsuspecting individuals with promises of profits up to 36% per annum, collecting over Rs 6,000 crore within a few years.
Mastermind Arrested
The scam was orchestrated by Nowhera Shaik, a woman based in Hyderabad. She was arrested last week at a hotel in Gurgaon after being on the run for over a month following the Supreme Court's cancellation of her bail. The court had ordered her to surrender.
Deception and Asset Seizure
Shaik repeatedly deceived courts and enforcement agencies. She even attempted to mislead the Supreme Court by claiming she had surrendered to Hyderabad police, who refused to detain her. Authorities have confiscated assets worth over Rs 400 crore beneficially owned and controlled by her, which are now being restituted to victims.
According to a senior ED official, "Nowhera Shaik, her family members, and other associates lured lakhs of people into investing in their Ponzi schemes." Initial investors were paid huge profits, but 1.7 lakh others lost their deposits. The Supreme Court ordered a probe and subsequently directed the confiscation and sale of all attached assets for restitution.
Shaik and her associates filed multiple affidavits and claims, further delaying the sale of assets. One associate, impersonating a PMO official under the alias 'Kalyan Banerjee', attempted to derail the Supreme Court's order on asset sale and restitution. He was arrested in January.
In 2024, during a search at Shaik's residence, the ED seized 12 vehicles, including a BMW, a Mercedes Benz, a Mahindra Scorpio, multiple Toyota Fortuners, and cash worth Rs 92 lakh.
