Hira Gold Scam: Supreme Court Gives Nowhera Shaikh Ultimatum to Repay ₹25 Crore or Face Imprisonment
(Judicial Quest News Network)
The Supreme Court of India on Wednesday issued a stern warning to Hira Shaikh, the managing director of Hira Gold Exim Private Limited, ordering her to return ₹25 crore taken from investors or face imprisonment. The court also warned that if she fails to comply, the company’s operations will be cancelled.
A bench comprising Justices JB Pardiwala and R Mahadevan emphasized that Hira Shaikh must return the ₹25 crore within two months. If she fails to do so, the company’s license will be revoked, and she will be sent to jail by the Enforcement Directorate (ED). The bench further ordered Shaikh to cease any further advertisements related to Hira Gold, noting that any violation would result in the cancellation of her bail.
This is the final opportunity for the accused. If the ₹25 crore is not deposited within the next two months, the company’s operations will be shut down, and Shaikh will be imprisoned,” the court stated.
Senior advocate Kapil Sibal, representing Shaikh, argued that she did not have the money. However, the court insisted that she must find a way to arrange the funds, whether by borrowing or other means. The court also urged the petitioner’s counsel to impress upon Shaikh the seriousness of the matter.
The court noted its dissatisfaction with Shaikh’s repeated non-compliance with its orders since November 11, 2024, when the deadline for her to surrender was extended on the condition that she would repay the ₹25 crore to the investors.
“If the ₹25 crore is not deposited within two months, we will proceed with cancellation,” the court reiterated.
This case stems from the fraud allegations against Hira Gold Exim Private Limited, a gold trading company that promised investors a 36% return on their investments but defaulted on dividend and maturity payments. Investors from various states, including Telangana, Andhra Pradesh, Maharashtra, Karnataka, and Delhi, filed complaints against the company for fraud and deception. The Serious Fraud Investigation Office (SFIO) initiated an investigation into the company, which remains ongoing.
In January 2021, the Supreme Court granted Shaikh interim bail on the condition that she would settle the claims of the investors. The court made it clear that failure to strictly comply with this condition would result in her return to custody, with little chance of securing bail thereafter.
The case continues to draw attention, with numerous legal proceedings still pending in multiple states across India.
