The enforcement directorate (ED) searched and seized Rs90 lakh in cash and 12 high-end cars and property documents worth Rs70 crore belonging to Heera group of companies, its managing director (MD) Dr Aalima Nowhera Shaik, her relatives and associates. She is chairman of the controversial Heera Islamic Business Group, better known as Heera Gold.
Last week, the Hyderabad office of ED conducted search operations under the provisions of PMLA 2002 at five locations in the city in an investment fraud perpetrated by the Heera group of companies, its MD Ms Shaik and others. ED has been investigating a money laundering case against Heera group of companies and Ms Shaik for cheating gullible people and collecting thousands of crore of rupees on the false promise of abnormally high returns of around 36%pa (per annum).
In a release ED says, "During the search operations, cash amounting to Rs90 lakh, 12 high-end cars including one BMW, one Mercedes Benz, nine Toyota Fortuner and one Mahindra Scorpio, 13 property documents in the name of Heera group, Ms Shaik and her relatives and associates valued at around Rs45 crore (book value), 11 benami property documents having book value of around Rs25 crore and various incriminating documents and digital devices related to diversion of proceeds of crime in India and abroad were recovered and seized."
"Searches also revealed that investment of proceeds of crime in movable and immovable properties acquired by Ms Shaik in the UAE. Further, details of new investment schemes and projects launched by Ms Shaik in collusion with other co-conspirators to defraud investors and divert previously acquired proceeds of crime were unearthed during the search operations," ED says.
Earlier, ED had provisionally attached properties worth about Rs 400 crore, which had been acquired from the proceeds of crime by Ms Shaik, Heera group of companies, and others. "Ms Shaik was earlier arrested by ED in this case and a prosecution complaint has also been filed before the special court (PMLA) at Hyderabad," it added.
Replying to an email sent by Moneylife with videos of panicky investors, the market regulator's Hyderabad office wrote to say, "Upon examination into the matter, it was found that the activities of Heera Group are in the nature of Ponzi Scheme. Further, the nature of activities of Heera Group was also discussed in the meetings of State Level Co-ordination Committees (SLCC) of Andhra Pradesh and Telangana, which are headed by Chief Secretaries of the respective states. It was decided in the meetings of SLCC that the activities of Heera Group appear to be beyond the regulatory ambit of SEBI and RBI and the case would be taken up for investigation by relevant authorities such as CID-EOW, and Serious Frauds Office of India (SFIO). Accordingly, SEBI had already referred the case to CID-EOW, Enforcement Directorate, Commissioner of Police-Hyderabad."
