In a landmark ruling, the Telangana High Court has imposed a substantial fine of Dh2 million (Rs5 crore) on Nowhera Shaikh, founder of the defunct Heera Group, while dismissing her petition to halt the auction of properties connected to a massive investment scandal. The court’s decision, delivered on Thursday, clears the path for India’s Enforcement Directorate to proceed with its scheduled auction of 59 attached properties on December 26th.
Justice Nagesh Bheemapaka characterized Shaikh’s last-minute legal challenge as a blatant misuse of judicial processes, particularly noting that the Supreme Court had already provided final authorization for the asset sales. The court ordered Shaikh to deposit the penalty into India’s Prime Minister’s National Relief Fund within an eight-week timeframe—a sanction that legal experts recognize as one of the highest court-imposed costs in recent Indian judicial history.
The ruling represents a significant development in a multi-year investigation into Heera Group’s operations, which allegedly defrauded investors of approximately Dh2 billion through sham investment schemes marketed as Shariah-compliant opportunities. The group specifically targeted expatriate communities in the UAE, promising unusually high returns through what they described as “interest-free” investment products.
The collapse of Heera Group in 2018 triggered cross-border investigations after the company abruptly ceased operations and payments to investors. The upcoming auction represents recovery efforts targeting an estimated Dh78 million in attached assets, though victim advocacy groups maintain that actual investor losses substantially exceed this figure. Court documents suggest more than 175,000 investors may have collectively invested over Dh1 billion, with significant contributions from UAE-based participants.
Shahbaz Ahmad Khan, president of the All India Heera Group Victims Association, welcomed the court’s decisive action against what he characterized as delay tactics, expressing hope that affected investors might finally see some restitution through the auction process.