Investors of the Heera Islamic Business Group, better known as Heera Gold, are coming out in the open to protest delayed payments following a financial crunch faced by this Ponzi company. Last week over a 100 victims of Heera Gold held public protests in Hyderabad along with victims and investors from other parts of India.
“Every day, I am receiving calls from panicky victims of Heera Gold from across the country seeking my help in recovering their investment. There are many who had invested more than Rs1 crore in Heera Gold and are now facing difficulties. They are neither receiving interest nor getting the principal amount back”. Mr Khan claims “the Heera Group and Dr Shaikh have filed around 17 cases against me, including defamation. I heard that they have got an injunction from the City Civil Court against me to prevent me from posting messages to highlight plight of victims on Facebook and other platforms. However, I am filing a writ petition against the injunction”.
He also alleges that due to the powerful political links of Dr Shaik, the police are not investigating the matter or taking action against Heera Gold. He says, “Police are asking investors/victims of Heera Gold to go to the court claiming that this is a civil matter.”
However, a senior official from the crime branch, Hyderabad, who does not want to be named, refuted all the allegations made by Mr Khan about lack of investigation. He says, “So far, only one first information report (FIR) had been filed. That was also filed in 2012 and based on that we are investigating the matter. However, not many victims are coming forward to give any statement or evidence. Last week, there was one FIR registered at the Banjara Hills Police station and it is about to be transferred to the crime branch. Once we receive it, we will investigate the matter so as to take it to the right legal course.”
Mr Khan, however, presents other version. He claims that 200 investor victims, who are ready to record a statement before the police. “However, when somebody files a complaint, he or she is offered refund of their money by Dr Shaik”. Mr Khan says that many victims are now ready to file a statement.
Earlier in July this year, market regulator Securities and Exchange Board of India (SEBI) told #KhabarLive that activities of Heera Islamic Business Group, better known as Heera Gold, are in the nature of Ponzi or multi-level marketing (MLM) scheme.
Replying to an email sent by #KhabarLive with videos of panicky investors, the market regulator’s Hyderabad office wrote to say, “Upon examination into the matter, it was found that the activities of Heera Group are in the nature of Ponzi Scheme. Further, the nature of activities of Heera Group was also discussed in the meetings of State Level Co-ordination Committees (SLCC) of Andhra Pradesh and Telangana, which are headed by Chief Secretaries of the respective states. It was decided in the meetings of SLCC that the activities of Heera Group appear to be beyond the regulatory ambit of SEBI and RBI and the case would be taken up for investigation by relevant authorities such as CID-EOW, and Serious Frauds Office of India (SFIO). Accordingly, SEBI had already referred the case to CID-EOW, Enforcement Directorate, Commissioner of Police-Hyderabad.”
In August 2012, Asaduddin Owaisi, Member of Parliament (MP) from Hyderabad, had registered a case against Dr Shaik for cheating a large number of local investors from his constituency. The Hyderabad Police are investigating this case.
On 10 September 2018, Farzanaunissa Mohammad Khaja filed an FIR under Section 406, 420 of Indian Penal Code (IPC) and section 5 of the Telangana Deposit of Financial Establishments Act, in Bajara Hills Police Station at Hyderabad. Ms Khaja has alleged in the FIR that her husband had invested Rs25 lakh in Heera Retail Hyderabad Pvt Ltd, but the company has refused to return her money. This FIR is most likely to be transferred to the Crime Branch for investigation.
This controversial and shadowy group has specifically targeted the Muslim community with the promise of high returns and constant references to ‘Allah’ to project itself as a devout and god-fearing organisation. The panic among investors over the past weeks is due to delays in making payments and a change in the payout dates.
In 2017, Dr Shaik, CEO of Heera Gold formed the All India Mahila Empowerment Party under the banner of justice for humanity. This party even contested 221 out of the 225 seats in the recently concluded Karnataka Assembly elections with a ‘diamond’ as its symbol. It is rumoured to have lost large sums of money. This and other rumours has triggered panic among people who want their money back.
Investigations and information by a premier government agency, perused by #KhabarLive, claim that Heera Gold is involved in hawala activities. The note lists various actions against the group. For instance, on 17 May 2014, the Hyderabad Police apprehended six accused, while Heera Group promoter, Dr Shaik was named an absconding accused. Subsequently, on 21 May 2014, the Enforcement Directorate (ED) searched Heera Group premises and seized documents pertaining to the illegal transfer of money through hawala.
The Heera Group began its operations in 2010 and since then, claims to have created 25 legal entities. Of these, only 10 were found to be registered on Registrar of Companies (ROC), Hyderabad and only four are found to have filed Balance Sheets (FY2012-13), which are being analysed. It is not registered under FCRA, says a government source.
A large number of PAN, TIN and other State-level registration numbers are shown on its website and are under ED and State Police investigation. These 10 companies have two sisters as Directors, namely Dr Shaik and Mubarak Jahan Shaik. The third Director (in only three companies) is another woman named Khamar Jahan Shaikh.
The Group claims to operate through over 19 companies in various business sectors, like gold trading, trading, textile, jewellery, mineral water, granite, tours and travels, developers, electronics, Hajj and Umrah services among others. Heera Group claims to have its offices in Dubai, Saudi Arabia, Canada, China and Hong Kong. It markets itself as a trader in gold products and gold dust.
Meanwhile, The Securities and Exchange Board of India (SEBI) has clarified that activities of Heera Islamic Business Group, better known as Heera Gold, are in the nature of Ponzi or multilevel marketing (MLM) scheme. However, since these activities are beyond the ambit of SEBI and Reserve Bank of India (RBI), the case has been referred to CID- Economic Offences Wing (EOW), Enforcement Directorate (ED) and Commissioner of Police in Hyderabad, SEBI said.
Replying to an email sent by #KhabarLive with videos of panicky investors, the market regulator’s Hyderabad office wrote to say, “Upon examination into the matter, it was found that the activities of Heera Group are in the nature of Ponzi Scheme. Further, the nature of activities of Heera Group was also discussed in the meetings of State Level Co-ordination Committees (SLCC) of Andhra Pradesh and Telangana, which are headed by Chief Secretaries of the respective states. It was decided in the meetings of SLCC that the activities of Heera Group appear to be beyond the regulatory ambit of SEBI and RBI and the case would be taken up for investigation by relevant authorities such as CID-EOW, and Serious Frauds Office of India (SFIO). Accordingly, SEBI had already referred the case to CID-EOW, Enforcement Directorate, Commissioner of Police-Hyderabad.”
The email further says, “As the matter is presently being handled by Central Crime Station-Hyderabad, SFIO-Telangana, and Enforcement Directorate-Hyderabad”, the regulator has sent the videos forwarded by #KhabarLive to its Mumbai office to these respective agencies. SEBI has also “marked a copy” to the Reserve Bank of India which is the nodal office for State Level Coordination Committee.
Earlier this month, #KhabarLive had pointed out the panic among investors of Heera Gold, headed by Dr Aalima Shaikh Nowhera (Nowhera Shaik). The trigger for people gathering to protest at Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities was the decision to ‘share profit’ once in three months instead of every month.
Heera Group claims to be a gold trading company with business all over the world. In the past four years, the lack of any enforcement action by investigation agencies has allowed it to grow rapidly and diversify into diverse business. In the past two years #KhabarLive has raised the issue of Heera Gold’s Ponzi operations with two SEBI Chairman — Mr UK Sinha as well as Mr Ajay Tyagi — because it operated like a vast collective investment scheme. Neither of the two SEBI chairmen bothered to respond. Our communication we said, “We hope SEBI will take note of this and hasten action so that people do not end up losing money. Many women too are being conned into borrowing against property to invest in these companies on the claim that the returns would be significantly higher than the interest they would pay on their loans.”
The controversial and shadowy group has specifically targeted the Muslim community with the promise of high returns and constant references to ‘Allah’ to project itself as a devout and god-fearing organisation. The panic among investors over the past weeks is due to delays in making payments and a change in the payout dates. Several media reports and investors say that its founder, Nowhera Shaik floated a political party, which lost badly in the recent Karnataka elections, which has led to its financial difficulties.
Typical of Ponzi operations that are in trouble, she has released a video to allay fears of investors and run down critics and those who are panicking at the payment delays.
Few days ago, several investors from Hyderabad, Mumbai, Pune, Aurangabad from Maharashtra and Karnataka reached Heera Gold’s central office at Hyderabad. They wanted to know why there was change in the payout scheme. However, instead of responding to issues raised by investors, the staff at Heera Gold closed office doors from inside.
On the other hand, Investors of Heera Islamic Business Group, better known as Heera Gold, are in a panic over payment delays and rumours about financial difficulties faced by the group, which has amassed vast sums of money by specifically targeting the Muslim community by invoking the name of “Allah” in its sales pitch. The trigger for people gathering to protest at Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities is the decision to ‘share profit’ once in three months instead of every month. But that is not the only issue.
Videos sent to us show that officials at Heera Gold’s corporate office at Hyderabad refused to meet people and had locked the office from outside while staying inside. The controversial group is under investigation by the Enforcement Department and the Serious Frauds Office of India (SFIO) for several years, but the community continued to be lured by the high monthly returns offered by its Ponzi-like business.
Interestingly, the group is headed by Dr Aalima Shaikh Nowhera (Nowhera Shaik), Chief Executive of Heera Group, who investors say is no longer in India. Typical of Ponzi operations that are in trouble, she has released a video to allay fears of investors and run down critics and those who are panicking at the payment delays. Source say that its immediate financial troubles follow its foray into politics. In 2017, Dr Shaik, CEO of Heera Gold formed the All India Mahila Empowerment Party under the banner of justice for humanity. This party even contested 221 out of the 225 seats in the recently concluded Karnataka Assembly elections with a ‘diamond’ as its symbol. It is rumoured to have lost large sums of money. This and other rumours has triggered panic among people who want their money back.
Heera Group claims to be a gold trading company with business all over the world. In the past four years, the lack of any enforcement action by investigation agencies has allowed it to grow rapidly and diversify into diverse business. In the past two years #KhabarLive has raised the issue of Heera Gold’s Ponzi operations with two SEBI Chairman — Mr UK Sinha as well as Mr Ajay Tyagi — because it operated like a vast collective investment scheme. Neither of the two SEBI chairmen bothered to respond. Our communication we said, “We hope SEBI will take note of this and hasten action so that people do not end up losing money. Many women too are being conned into borrowing against property to invest in these companies on the claim that the returns would be significantly higher than the interest they would pay on their loans.”
Investigations and information by a premier government agency, perused by #KhabarLive, claim that Heera Gold is involved in hawala activities. The note lists various actions against the group. For instance, on 17 May 2014, the Hyderabad Police apprehended six accused, while Heera Group promoter, Dr Shaik was named an absconding accused. Subsequently, on 21 May 2014, the Enforcement Directorate (ED) searched Heera Group premises and seized documents pertaining to the illegal transfer of money through hawala.
Earlier, in August 2012, Asaduddin Owaisi, Member of Parliament (MP) from Hyderabad, had reportedly registered a case against Dr Shaik for cheating a large number of local investors from his constituency.
The Heera Group began its operations in 2010 and since then, claims to have created 25 legal entities. Of these, only 10 were found to be registered on Registrar of Companies (ROC), Hyderabad and only four are found to have filed Balance Sheets (FY2012-13), which are being analysed. It is not registered under FCRA, says a government source.
A large number of PAN, TIN and other State-level registration numbers are shown on its website and are under ED and State Police investigation. These 10 companies have two sisters as Directors, namely Dr Shaik and Mubarak Jahan Shaik. The third Director (in only three companies) is another woman named Khamar Jahan Shaikh.
The Group claims to operate through over 19 companies in various business sectors, like gold trading, trading, textile, jewellery, mineral water, granite, tours and travels, developers, electronics, Hajj and Umrah services among others. Heera Group claims to have its offices in Dubai, Saudi Arabia, Canada, China and Hong Kong. It markets itself as a trader in gold products and gold dust.
Heera Group has deep ties with politicians from Andhra Pradesh, which may have allowed it to flourish and expand investor network across the country. In December 2017, its central office at Hyderabad was inaugurated by Mohammed Mahmood Ali, Deputy Chief Minister of Telangana.
Few days ago, several investors from Hyderabad, Mumbai, Pune, Aurangabad from Maharashtra and Karnataka reached Heera Gold’s central office at Hyderabad. They wanted to know why there was change in the payout scheme. However, instead of responding to issues raised by investors, the staff at Heera Gold closed office doors from inside.
Earlier this week, Hyderabad-based Shahbaz Ahmed Khan, who is vocal critic of Heera Gold’s business model had filed a complaint alleging life threats from Dr Shaik. Speaking with The Hans India, Khan had said that ever since he started questioning about the ‘dubious’ nature of the business which offers investors a monthly return of Rs3,000 per Rs1 lakh, he has been facing life threat from the business woman-turned-politician. “At least three investors have approached me to help them. Hence, I request the police department to enquire into the businesses of the Heera Gold. For the past eight years, I have been facing threat from the woman,” Khan was quoted as saying in the report. #KhabarLive
