Ponzi scam: ED attaches ₹300 crore assets of Telangana group

The Enforcement Directorate (ED) recently attached properties worth ₹299.98 crore belonging to Nowhera Shaikh of Hyderabad based Heera Group of companies and others, in relation to a Ponzi scheme case. The seized properties including 96 immovable properties in the form of agricultural lands, commercial plots, residential buildings and commercial complexes worth ₹277.29 and bank balances worth ₹22.69 crore.

The Heera Group has been booked in various cases registered across the country. Complainants alleged that the firm collected deposits from lakhs of investors by falsely promising high returns. October 26, 2018, Shaikh was arrested by the Mumbai police’s economic offences wing (EOW).

Earlier this year, the ED started investigating the matter under the Prevention of Money Laundering Act (PMLA), on the basis of a first information report (FIR) at the central crime station in Hyderabad. The agency arrested her in May.

According to the ED’s investigation, Shaikh incorporated multiple companies and collected an amount of approximately ₹5,600 crore as unauthorized deposits from around 1.72 lakh investors. She did this by creating a network of marketing executives and selling agents, who promised returns of 3% per month or 36% per year.

“She floated multiple schemes and extensively advertised the schemes to lure the victims. For this purpose, Shaikh started 24 entities under the Heera Group and opened 182 bank accounts in different parts of the country,” stated the agency. “Shaikh, along with her family members and close associates, diverted the depositors’ money to their personal accounts and amassed huge movable and immovable assets for wrongful personal gain. The diverted funds were further layered into various shell companies and in the form of benami assets.”