UAE investors hope to recover money with auction of 40 Heera Group properties in India

Hundreds of UAE residents who lost money in the collapsed Heera Group investment schemes are closely watching developments in India after the Enforcement Directorate (ED) announced the auction of 40 properties linked to the group and its founder Nowhera Shaikh later this month.

The properties, attached under India’s Prevention of Money Laundering Act, will be sold through a government-run e-auction platform on December 26, according to an auction catalogue issued on Tuesday (December 16) by MSTC, a government-run auction platform.

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The assets include commercial buildings, residential flats, shops, office spaces, open land and agricultural plots spread across Hyderabad and other parts of Telangana, as well as Mumbai and Bengaluru.

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For UAE-based investors, many of whom were among the earliest contributors to the scheme, the auction has brought a sense of relief after years of legal limbo. The Heera Group had aggressively marketed its “interest-free” investment plans to Gulf residents, promising high and regular returns that appealed to expatriates seeking halal investment options.

As reported earlier by Khaleej Times, the Heera Group operated on a vast scale across India and the Gulf. Investment plans such as Heera Gold, Heera Textiles and Heera Foodex promised returns of up to 65–80 per cent annually, drawing in tens of thousands of investors. Many UAE residents invested their life savings, while others took loans, reassured by promises of steady monthly payouts.

The scheme collapsed in 2018, when payments abruptly stopped and Heera offices, including those in Dubai’s Jumeirah Lake Towers and facilities in Sharjah and Ras Al Khaimah, shut down. Nowhera Shaikh was arrested later that year, triggering investigations by multiple Indian agencies and leaving investors scrambling for answers.

According to the Enforcement Directorate, the attached assets form part of efforts to recover investor money, with earlier disclosures putting the recovery target at nearly Dh78 million (about Rs1.9 billion), including legal costs. Victim groups, however, say the actual exposure is far larger than official estimates. Figures cited in court filings and investigation records suggest that more than 175,000 investors may have put in over Dh1 billion (around Rs25 billion), a significant portion of it from overseas, including the UAE.

Shahbaz Ahmad Khan, president of the All India Heera Group Victims Association, said the latest auction was an important step but warned that expectations should remain realistic. He said many victims, especially overseas investors, still risk being excluded if they have not formally lodged claims, urging them to ensure their documentation is submitted to the Serious Fraud Investigation Office (SFIO).

Data previously shared with Khaleej Times showed that despite an official call for claims, fewer than 7,000 submissions were received, representing only a fraction of the estimated losses. Victim representatives say many investors missed the claims process due to lack of awareness or missing paperwork.

For many UAE residents, the emotional toll has been as severe as the financial hit. Heera Group’s collapse forced families into debt, disrupted children’s education and led to years of instability. Some expatriates eventually returned to their home countries after losing their savings, while others continue to juggle repayments in the Gulf.

The ED has clarified that the properties will be auctioned on an “as-is-where-is” basis, with buyers expected to carry out their own due diligence. While the sale of 40 assets marks one of the largest liquidation exercises in the case so far, investor groups say it is unlikely to fully compensate victims. 

Mazhar Farooqui

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mazhar@khaleejtimes.com

Mazhar Farooqui, or Maz, is a multiple award-winning investigative journalist and Senior Editor at Khaleej Times. Renowned for exposing corruption and uncovering major scams, he is also the author of The Maz Files: Scoops, Scams & Showdowns.