ED Attaches Rs. 103.4 Crore Worth of Properties in Heera Group Ponzi Scheme Case
(Judicial Quest News Network)
In a key development in the ongoing investigation into the Heera Group Ponzi scheme, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached 27 immovable properties, estimated to be worth Rs. 103.4 Crore (approximately), under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The book value of the attached properties stands at Rs. 17.14 Crore.
The properties are linked to Mrs. Nowhera Shaik, the Managing Director of Heera Group of Companies, which is at the centre of the massive financial fraud case. ED’s investigation has revealed that the group and its leadership deceived thousands of investors by promising exorbitant returns of around 36% per annum on their investments. In reality, the company was running a classic Ponzi scheme, collecting crores of rupees from unsuspecting individuals.
According to the ED, a portion of the ill-gotten funds was funnelled into the purchase of various properties. These assets were either registered in the name of Mrs. Shaik, her family members, associates, or directly under the names of the companies themselves. This move highlights the widespread efforts made by the accused to conceal and launder the proceeds of crime.
This latest round of property attachments comes after the ED had already provisionally attached assets worth approximately Rs. 400 Crore linked to Mrs. Shaik and her associates. In connection with the case, Mrs. Shaik had previously been arrested by the ED. The agency has filed both the Prosecution Complaint (PC) and a supplementary Prosecution Complaint before the Hon’ble Special Court (PMLA), Hyderabad, marking a significant step forward in the legal proceedings.
In line with the Hon’ble Supreme Court’s directions in WP (Cr) 31 of 2020, the ED is also working on the restitution of properties to the genuine investors who were defrauded by the Heera Group. On November 11, 2024, the Supreme Court allowed the auctioning of two properties attached by the ED, which are set to be sold off in order to settle the claims of the affected investors. This auction process is currently underway.
As the investigation continues, ED officials are committed to ensuring that further actions are taken to bring justice to the victims, with efforts aimed at recovering more assets tied to the fraudulent activities of the Heera Group.
