The Enforcement Directorate (ED) has auctioned 23 immovable properties valued at around Rs 159 crore associated with the alleged financial fraud by Nowhera Shaik, the Heera Group of Companies, and related entities. This action aims to compensate numerous investors who were reportedly deceived nationwide. Shaik serves as the head of Heera Group of companies.
The auction, conducted through Metal Scrap Trade Corporation Limited (MSTC) on June 19, was carried out as per the Supreme Court’s directives in the ongoing case. The ED’s Hyderabad unit initiated a money laundering probe against Shaik, the Heera Group, and others for purportedly amassing investments exceeding Rs 5,978 crore from the public, promising returns exceeding 36% annually.
Investigations revealed that the accused failed to repay the principal amounts, causing significant losses to investors in multiple states. The auctioned properties were previously seized under the Prevention of Money Laundering Act (PMLA), 2002, as they were identified as proceeds of crime from scheduled offenses.
These assets, confirmed as proceeds of crime by the Adjudicating Authority under the PMLA, were auctioned transparently and competitively through MSTC, following the apex court’s guidelines. The proceeds from the sale will be used for compensating genuine investors and victims under the Supreme Court’s supervision.
The ED emphasized that this move will aid in compensating the numerous investors affected by the fraudulent investment scheme. Additionally, the agency noted the progress in the criminal proceedings against Nowhera Shaik. The Supreme Court revoked her bail for non-compliance, leading to a non-bailable warrant issued by a Special PMLA Court in Hyderabad. Shaik was arrested in Gurugram, Haryana, on May 21 and remains in judicial custody.
