In a decisive move to assist defrauded investors, the Supreme Court has directed the Enforcement Directorate (ED) to auction two properties belonging to Nowhera Shaikh, Managing Director of Heera Gold Exim Private Limited. The ruling comes amidst ongoing efforts to recover funds from the embattled gold trading firm, which allegedly defrauded thousands of investors with promises of high returns.
The court ordered Shaikh to deposit Rs 25 crore with the ED within three months, following an earlier ruling that revoked her bail due to non-compliance. In October, the Supreme Court had set a Rs 580 crore target for Shaikh to repay investors as a condition of her bail. However, Shaikh failed to fulfill this requirement, leading to the cancellation of her bail and an order to surrender within two weeks. Although this deadline was extended on November 4, the Supreme Court is closely monitoring her progress.
During the latest hearing, Senior Advocate Kapil Sibal, representing Shaikh, proposed that three of her properties were unencumbered and available for liquidation. After examining reports from the ED and the State of Telangana, the court confirmed that two of these properties, including Naina Towers, are free from encumbrances and should proceed to auction. The status of a third property remains under review.
The ED, now authorized to conduct the auction, will set a reserve price in consultation with a government-approved valuer. Any claims on these properties must be resolved through civil court proceedings, as stipulated by the Supreme Court.
The Heera Gold fraud case has stirred significant public outrage, as Shaikh’s firm allegedly misled investors with the promise of 36% dividends in gold trading ventures. Instead, Heera Gold reportedly used investor funds for other purposes, defaulting on both returns and principal repayments. Complaints from defrauded investors prompted a large-scale investigation, exposing the fraudulent methods used to sustain the scheme.
The Supreme Court initially granted Shaikh interim bail on January 19, 2021, with the stipulation that she repay investors. Her bail was extended multiple times and eventually became absolute in August 2021. However, the October 2024 revocation reflected the court’s dissatisfaction with her failure to meet her financial commitments.
With the auction now in process, the Supreme Court emphasized that recovered funds should be prioritized for investor repayment. The auction, which the ED aims to complete within three months, offers a glimmer of hope for affected investors, many of whom lost their life savings to the Heera Gold scheme.
