Heera Group Founder Fined Dh2M as Court Clears ED Property Auction

An Indian court has imposed a fine of Dh2 million on Nowhera Shaikh, founder of the collapsed Heera Group, while rejecting her last-minute attempt to halt the auction of properties linked to an alleged investment scam that affected hundreds of UAE residents.

The Telangana High Court on Thursday dismissed Shaikh’s petition seeking to stop the Enforcement Directorate’s (ED) auction of her attached properties scheduled for December 26, describing the plea as a misuse of the judicial process.

Justice Nagesh Bheemapaka directed Shaikh to deposit Rs5 crore (around Dh2 million) into the Prime Minister’s National Relief Fund within eight weeks -- a penalty legal experts say is among the highest costs imposed by an Indian court on a petitioner.

The court expressed strong displeasure that Shaikh approached the High Court despite the Supreme Court having already cleared the way for the auction. The apex court had ruled earlier that the ED was free to proceed with the attachment and sale of properties “in accordance with law”, leaving no scope for further intervention.

Justice Bheemapaka questioned why Shaikh sought a stay after the matter had reached finality and rejected claims that the auction violated provisions of the Prevention of Money Laundering Act (PMLA). Arguments that the properties were auctioned without formal confiscation orders, at undervalued reserve prices, or while Shaikh was in jail were found unconvincing.

Shaikh is accused of orchestrating an investment fraud estimated at nearly Dh2 billion, affecting investors in India and overseas, including a large number of Gulf-based expatriates.

As previously reported by UAE local media, the Heera Group promoted so-called “interest-free” investment schemes among UAE residents, promising unusually high and regular returns. Marketed as Shariah-compliant, the schemes attracted many expatriates seeking halal investment options.

The operation collapsed in 2018 after payouts abruptly stopped and Heera offices in Dubai’s Jumeirah Lake Towers, as well as in Sharjah and Ras Al Khaimah, shut down. Shaikh was arrested later that year, triggering investigations by multiple Indian agencies.

UAE investors are now closely monitoring the upcoming auction of 59 Heera-linked properties in India, which the ED says is aimed at recovering investor funds. The agency estimates recoveries of nearly Dh78 million from attached assets, including legal costs, though victim groups say actual losses are far higher.

Court records indicate that more than 175,000 investors may have invested over Dh1 billion, a substantial portion from overseas markets such as the UAE.

Shahbaz Ahmad Khan, president of the All India Heera Group Victims Association, said the ruling sent a strong message against “delay tactics” and raised hopes that the auction would proceed without further obstruction.

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