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Indian court fines Heera Group CEO record Dh2 million as UAE investors await property auction
After Nowhera Shaikh’s petition seeking to stop the auction, the court questioned why Shaikh was seeking a stay when the matter had already reached finality
An Indian court has imposed a Dh2-million fine on Nowhera Shaikh, founder of the collapsed Heera Group, while rejecting her last-minute attempt to halt the auction of properties linked to the alleged investment scam that affected hundreds of UAE residents.
The Telangana High Court on Thursday dismissed Shaikh’s petition seeking to stop the Enforcement Directorate’s (ED) auction of her attached properties scheduled for December 26, calling the plea a misuse of the judicial process.
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Justice Nagesh Bheemapaka ordered Shaikh to deposit Rs5 crore (around Dh2 million) into India’s Prime Minister’s National Relief Fund within eight weeks.
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Legal experts in India said this is one of the highest costs ever imposed by the court on a petitioner.
The court expressed strong displeasure that Shaikh approached the High Court despite the Supreme Court already clearing the way for the auction.
The apex court had earlier ruled that the ED was free to proceed with the attachment and sale of all properties “in accordance with law”, leaving no scope for further intervention.
Justice Bheemapaka questioned why Shaikh was seeking a stay when the matter had already reached finality, and rejected arguments that the auction violated provisions of the Prevention of Money Laundering Act (PMLA).
Shaikh had claimed that the properties were being auctioned without a formal confiscation order, that reserve prices were below market value, and that attachments were confirmed while she was in jail and unable to defend herself. The court found these arguments unconvincing.
Shaikh is accused of orchestrating an investment fraud estimated at roughly Dh2 billion, affecting investors across India and overseas, including a large number of Gulf-based expatriates.
As previously reported by Khaleej Times, the Heera Group marketed "interest-free” investment schemes to UAE residents, promising unusually high and regular returns. These schemes were pitched as Shariah-compliant and attracted many expatriates seeking halal investment options.
The operation collapsed in 2018, when payouts abruptly stopped and Heera offices in Dubai’s Jumeirah Lake Towers, as well as in Sharjah and Ras Al Khaimah, shut down. Shaikh was arrested later that year, triggering probes by multiple Indian agencies.
UAE investors are now closely tracking the upcoming auction of 59 Heera-linked properties in India, which the ED has described as part of efforts to recover investor funds.
According to the ED, the recovery target from attached assets is close to Dh78 million, including legal costs. Victim groups, however, say the actual losses are far higher.
Court filings and investigation records suggest that more than 175,000 investors may have invested over Dh1 billion, a significant share of it from overseas markets such as the UAE.
Shahbaz Ahmad Khan, president of the All India Heera Group Victims Association, told Khaleej Times that the verdict sent a strong message against “delay tactics”. He said investors, including many in the UAE, were now hoping the auction would proceed without further obstruction.
Mazhar Farooqui
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.
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