Hyderabad – Police arrested CEO and MD of Heera Group on Tuesday afternoon in Hyderabad on the charges of allegedly cheating the investors. Investors protested and took to streets which eventually led to her arrest.
45-years-old – Dr. Nowhera Shaik also known as ‘Aapa’ – CEO of Heera Group and President of All India Mahila Empowerment Party, was arrested on a transit warrant when she was escaping India from Delhi.
Hyderabad city police commissioner Anjani Kumar held a press conference on Tuesday, and said, “during investigation evidence of diversion of funds have come to light. Evidence has also been found of purchase of assets in different names of Individuals as well as companies.”
“Many Investors have not been paid their dues since last few months by accused companies The companies and other accused have not cooperated with the police or provided relevant information during the course of the investigation. The main accused also made efforts to mislead the police and avoid the investigation,” he added.
Mrs. Shaik promised 35 percent annual returns on the investments. She also promised to reform the Muslim economy to make it completely ‘interest-free’.
She failed to fulfill her promises and kept dodging the investors.
The Group has received the life-time savings of thousands of retirees, widows and single-mothers, as investments.
A distressed widow in Hyderabad said, “my house rent is Rs.11000, and Aapa (Shaik) has been delaying payments for the past three months. The house owner will kick us out.”
Some of the investors express extreme anger over the ‘promoters’ who certified the business as Halaal, which urged them to invest crores of their savings.
Thousands of investors, who sold their real-estate, were taken a back after the news of her arrest broke.
Her critics allegedly blame her for spending the investments in launching her party – MEP, renting Bollywood actors for her promotional events, and sponsoring cricket tournaments in Sharjah-UAE.
According to a report by GulfNews, UAE-based investors are in deep-trouble after her arrest has been announced by Hyderabad Police in a press-conference on Tuesday afternoon.
An investor who works in Dubai told media that he fears he had become an unwitting victim of an elaborate Ponzi scheme.
“I lost Dh200,000. It was all I had. I am ruined,” he wept.
“They told us they will invest our money in gold and textile and give us monthly profits. I joined them sometime back by investing Dh100,000. Initially they paid me around Dh3,000 monthly but soon the payments dried out,” another investor said.
An Abu-Dhabi based NRI said he is worried about the Dh500,000 he invested with Heera Gold’s Jumeirah Lake Towers office.
They have demanded strict legal action to be taken against Mrs. Shaik.
“We have no other option but to fight legally,” said a Dubai-based Indian businessman.
Last month, market regulator Securities and Exchange Board of India (SEBI) clarified that the activities of Heera Gold were Ponzi.