ED Attaches Nowhera Shaikh Assets Worth 300 Crore
Today's attachments by the ED are one more step in recovering the Rs 5,600 crore allegedly stolen by Shaikh through her elaborate ponzi scheme.
Hyderabad | 16th August 2019
The Enforcement Directorate on Friday attached 96 immovable properties based in Telangana, Kerala, Maharashtra, Delhi and Andhra Pradesh worth Rs 277.29 crore and movable assets of Rs 22.69 crore totaling Rs 299,99,16,291 belonging to Nowhera Shaikh, under PMLA 2002.
The ED had initiated investigations under the PMLA on the basis of FIRs registered by the Telangana & Andhra Pradesh police against Nowhera Shaikh of the Heera group of companies, and related others, on allegations of illegally collecting deposits from lakhs of investors with the promise of very high returns. Multiple FIRs have been registered by the aggrieved depositors across the country against the Heera group.
During the course of the investigations, it was revealed that Shaikh had incorporated multiple companies under the Heera group of companies and had collected approximately Rs 5,600 crore in unauthorized deposits from around 1,72,000 investors (IBG members) across the country by engaging a network of marketing executives and direct selling agents, making false promises of high returns - 3% per month (36% per year). She floated multiple schemes and extensively advertised the schemes to lure the victims.
For this purpose, Shaikh started 24 firms/entities under the Heera group, and opened 182 accounts in different banks in different parts of the country in the name of these 24 entities. Further, 10 bank accounts were also opened in foreign countries including the UAE and Saudi Arabia.
Shaikh did not possess any valid permission for collecting these deposits.
She also started gold, food & textile trading businesses only to create the impression that she was earning legitimate profits, when in reality the payouts to the old members were simply being funded from the cash flows generated from new members / investments. The volumes in her gold, textile and food businesses were miniscule and not sufficient to justify the high returns promised by her.
Shaikh along with her family members and close associates diverted the depositors' money to personal accounts and amassed huge movable and immovable assets illegally. The diverted funds were further layered into various shell companies and converted to benami assets.
Today's attachments by the ED are one more step in recovering the money allegedly stolen by Shaikh through her elaborate ponzi scheme.
filed in: Crime, Hyderabad Crime, Business Crimes, Nowhera Shaik, Enforcement Directorate