The Enforcement Directorate (ED) officials have attached ₹299.99 crore worth assets belonging to Nowhera Shaik, the owner of Hyderabad-based Heera group of companies, under the Prevention of Money Laundering Act (PMLA), 2002.
The attachment order was given in a case of ponzi fraud involving the group of companies . The 96 properties attached by the authorities are located in Telangana, Kerala, Maharashtra, Delhi and Andhra Pradesh. These assets include farmlands, commercial plots, residential buildings and commercial complexes. Apart from these properties, bank account balances to the tune of ₹22.69 crore were also attached.
The probe was undertaken based on the criminal cases registered by the Central Crime Station of Hyderabad Police Commissionerate, the ED officials said. Petitioners alleged that Ms. Shaik had started different companies under M/s Heera Group and collected unauthorised deposits of nearly ₹5,600 crore from the people.
Nearly 1,72,000 persons from different parts of the country invested in the companies which hired a network of marketing executives and direct selling agents. These agents collected deposits with false promises of high interest returns of 36% a year. She allegedly floated different schemes and collected funds through extensive advertising.
According to investigators, Ms. Shaik, along with her family and close aides, diverted the depositors' money into personal bank accounts and purchased massive immovable and movable assets allegedly for wrongful gains. The deposits were eventually transferred into shell companies.
Authorities said money was also used to purchase benami assets.
The ED authorities maintained that Ms. Shaik did not have permission under the Banking Regulation Act, Companies Act, Reserve Bank of India Act. There was no consent from other agencies like Securities Exchange Board of India either.
She started various businesses in gold, food and textile to convince depositors of high returns. But in reality, she was paying them from the cash flow generated by the newly joining members and investors, they said. Investigation is still on.
