ED Arrests Heera Group Chief Nowhera Shaik in Multi-Crore Investment Fraud

The Enforcement Directorate has taken Heera Group chief Nowhera Shaik into custody in relation to one of India's largest investment fraud schemes. The arrest comes as part of an ongoing investigation into the multi-crore scam that has victimised more than 1.72 lakh investors nationwide.

Shaik was apprehended on May 21 from Gurugram in Haryana by the ED's Hyderabad Zonal Office acting under provisions of the Prevention of Money Laundering Act. She was subsequently presented before the Special PMLA Court in Hyderabad, which ordered her remanded to judicial custody.

The investigation traces back to multiple first information reports lodged by police authorities in Telangana and Andhra Pradesh against Shaik, Molly Thomas, Biju Thomas, and various entities associated with the Heera Group.

At the heart of the fraud lie allegations that the accused mobilised deposits totalling more than Rs.3,000 crore from investors across the country. Individuals were lured with promises of annual returns approaching 36 per cent through investments in Heera Group ventures. The promised yields and principal investments were never returned to depositors.

Investigators contend that funds collected from investors were systematically diverted from company bank accounts into personal accounts controlled by the accused. Using these illicit proceeds, substantial movable and immovable properties were acquired, the agency claims. The ED has since attached multiple properties connected to the case under anti-money laundering legislation.

Shaik faced accusations of deliberately obstructing the investigation by submitting false affidavits and claims to the Supreme Court. The apex court subsequently authorised the ED to proceed with auctioning seized properties before the trial concluded, enabling funds to be channelled back to defrauded investors through the Serious Fraud Investigation Office. To date, property auctions have yielded approximately Rs.122 crore in recoveries.

Officials further alleged that Shaik consistently refused to cooperate in executing sale documentation for auctioned properties and disregarded court orders to surrender to prison authorities. Following her continued non-cooperation, the Special PMLA Court cancelled her bail on May 7, 2026, and issued a non-bailable warrant.

Shaik subsequently absconded, prompting investigators to trace her movements. The ED located her at an Airbnb residence in Gurugram, where she was allegedly residing under an assumed identity using fraudulent Aadhaar documentation bearing the name "Shaik Khamar Jahan." She was staying at the location alongside an associate identified as Sameer Khan.

A coordinated operation between the ED and Haryana Police led to her apprehension. In a related development, the agency arrested another accused, Kalyan Banerjee, in January on charges of impersonating a legal advocate and attempting to obstruct ED auction proceedings connected to the case.

The investigation remains active with further developments anticipated.