The Enforcement Directorate (ED) on Wednesday arrested Heera Group of Companies’ managing director Nowhera Shaikh and two of her associates on charges of money laundering in the controversial Ponzi-like scheme.
Ms. Shaikh, her personal assistant Molly Thomas and software developer Biju Thomas, were produced before the Metropolitan Session Judge, who granted seven days of ED custody. The money laundering regulator has initiated an investigation under PMLA after Telangana police registered several cases against the firm.
Heera Group is accused of fraudulently collecting investments from lakhs of people by luring them with very high returns of approximately 36% by indulging in gold trading and other businesses. The ED is grilling the accused for their different companies, bank accounts and multiple properties in India.
“The scheme was unsustainable and the group has defaulted in the repayment of the principal amount, as well as promised returns to investors,” an ED official said.
During the course of the investigation, the ED found that the accused and their group of companies collected more than ₹3,000 crore from 1,72,114 people across the country on the pretext of investment. “Deposits were also collected from people in Hyderabad, some other parts of Telangana, Andhra Pradesh and Kerala. The group has also mobilised big investments from NRIs in UAE, Saudi Arabia and other Middle East countries,” the agency said.
Further, it said that Ms. Shaikh and others have diverted the collected money to their personal bank accounts through their company bank accounts and benamis for wrongful gain and amassed huge movable and immovable properties. Ms. Shaikh, who is also the founder of All India Mahila Empowerment Party, has floated 24 entities under Heera Group, which had 182 accounts in different banks in the country. The firm has also opened 10 bank accounts in various foreign countries, including UAE and Saudi Arabia.