Impersonation and Obstruction: ED Arrests Man Over Heera Group Asset Auctions

India’s federal anti-money laundering agency has arrested a man for allegedly impersonating a government consultant and attempting to interfere with enforcement and judicial processes in the long-running Heera Group case, which has affected thousands of investors in India and the UAE.

 

In a statement, the Enforcement Directorate (ED) said its Hyderabad zonal office arrested Kalyan Banerjee on January 10 in connection with an investigation under the Prevention of Money Laundering Act (PMLA), 2002. The arrest forms part of the agency’s ongoing probe into efforts to obstruct the auction of assets attached in the Heera Group case.

 

The investigation relates to the collapse of the Heera Group and its founder Nowhera Shaik, who is accused of collecting more than Dh2.45 billion from the public by promising returns of over 36 per cent annually, before allegedly defaulting on repayments. The ED has classified the funds raised as proceeds of crime under the PMLA.

 

According to the agency, Banerjee was engaged by Shaik after repeated legal challenges to stall the auction of attached properties failed before various courts. Indian authorities have been seeking to auction confirmed attached assets in order to realise value and restore funds to victims of the alleged fraud, in accordance with the restitution framework under the PMLA.

 

The ED alleged that Banerjee falsely projected himself as having close connections with senior bureaucrats and political figures, and contacted enforcement officers in an attempt to manipulate or delay the auction process. When advised to follow due process, he is accused of resorting to threats and exerting pressure on officials to obstruct proceedings.

 

Searches conducted at Banerjee’s premises in Secunderabad on January 10 resulted in the seizure of mobile phones containing WhatsApp communications with Shaik and her associates, the agency said. Investigators allege the messages revealed coordinated efforts to influence investigative and judicial processes and to facilitate the sale of properties acquired through alleged proceeds of crime.

 

In his statement recorded under the PMLA, Banerjee reportedly admitted to impersonation and stated that he acted on the directions of Shaik and her associates. The ED said he acknowledged that he knowingly assisted in activities connected with proceeds of crime, thereby attracting criminal liability under the statute.

 

Banerjee was produced before the special PMLA court in Nampally on January 11 and has been remanded to judicial custody until January 23.

 

The ED has previously stated that it attached properties worth approximately Dh175.5 million in the Heera Group case and has filed prosecution complaints before the special PMLA court in Hyderabad. The agency has also approached the Supreme Court seeking permission to auction confirmed attached assets to ensure restitution to victims.

 

Last month, the Telangana High Court dismissed a petition filed by Shaik seeking to halt an auction and imposed exemplary costs of Rs5 crore (Dh2 million), directing that the amount be deposited in the Prime Minister’s relief fund.

 

The Heera Group case has had a significant cross-border impact, particularly in the UAE, where a large number of expatriate investors were affected by the group’s investment schemes. Authorities have maintained that expeditious completion of asset auctions is essential to protect investor interests and uphold the integrity of enforcement proceedings.

 

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