SEBI confirms Heera Gold is a Ponzi scheme,
says EOW, ED and SFIO probing the MLM:
Heera gold chairman Dr. Nowerah Shaikh
arrested by Hyderabad Police:
Numerous cases registered against Heera Group
at Mumbai, Hyderabad and Bangalore:
Dr. Nowerah
Shaikh filed writ petition in Supreme Court of India on 09-09-2017.
Writ Petition filed by the Chairman of Heera
Gold
WP (Civil) NO.0877/2017
NOWHERA SHAIK
S/D/W/Thru:- SH NANNE SAHEB
H. NO 9-4-134/A/5/23/1, 5TH FLOOR, H.H. RESIDENCY VALI COLONY,
GOLKONDA , DISTRICT: HYDERABAD ,HYDERABAD , TELANGANA
Vs
1 UNION OF INDIA MINISTRY OF HOME
AFFAIRS SECRETARY
SECRETARY NORTH BLOCK, CENTRAL SECRETARIAT , DISTRICT: NEW DELHI ,NEW DELHI , DELHI
SECRETARY NORTH BLOCK, CENTRAL SECRETARIAT , DISTRICT: NEW DELHI ,NEW DELHI , DELHI
2 UNION OF INDIA SECRETARY
MINISTRY OF EXTERNAL AFFAIRS
E BLOCK, CENTRAL SECRETARIAT, NEW DELHI ,NEW DELHI , DELHI
E BLOCK, CENTRAL SECRETARIAT, NEW DELHI ,NEW DELHI , DELHI
3 UNION OF INDIA SECRETARY
MINISTRY OF LAW AND JUSTICE
4TH FLOOR, A-WING, SHASTRI BHAWAN, NEW DELHI ,NEW DELHI , DELHI
4TH FLOOR, A-WING, SHASTRI BHAWAN, NEW DELHI ,NEW DELHI , DELHI
4 UNION OF INDIA SECRETARY
MINISTRY OF MINORITY AFFAIRS
11TH FLOOR, PARYAVARANBHAVAN, CGO COMPLEX, LODHI ROAD, NEW DELHI
11TH FLOOR, PARYAVARANBHAVAN, CGO COMPLEX, LODHI ROAD, NEW DELHI
Same was withdrawn
on 31-01-2018
DISPOSED (Motion
Hearing
PART HEARD MATTERS) Case Withdrawn-Ord dt:31-01-2018
PART HEARD MATTERS) Case Withdrawn-Ord dt:31-01-2018
JUDGES: HON'BLE
THE CHIEF JUSTICE, HON'BLE MR. JUSTICE A.M. KHANWILKAR, HON'BLE DR. JUSTICE
D.Y. CHANDRACHUD
Another Writ
petition filed before withdrawing WP No. 0877/ 2017
WP(Civil) No.067
of 2018 filed on 19-01-2018
MS. NOWHERA SHAIK S/D/W/Thru:- NANNE SAHEB
H.NO. 9-4-134/A/5/23/1, 5TH FLOOR, H.H. RESIDENCY, VALI COLONY,
H.NO. 9-4-134/A/5/23/1, 5TH FLOOR, H.H. RESIDENCY, VALI COLONY,
GOLKONDA, HYDERABAD , DISTRICT: HYDERABAD
,HYDERABAD , TELANGANA
Vs.
1 UNION OF INDIA MINISTRY OF HOME
AFFAIRS THROUGH THE SECRETARY MINISTRY OF HOME AFFAIRS MINISTRY OF HOME AFFAIRS
THROUGH THE SECRETARY MINISTRY OF HOME AFFAIRS MINISTRY OF HOME AFFAIRS NORTH BLOCK , DISTRICT: CENTRAL SECRETARIAT ,NEW DELHI , DELHI
THROUGH THE SECRETARY MINISTRY OF HOME AFFAIRS MINISTRY OF HOME AFFAIRS NORTH BLOCK , DISTRICT: CENTRAL SECRETARIAT ,NEW DELHI , DELHI
2 UNION OF INDIA SECRETARY
MINISTRY OF EXTERNAL AFFAIRS
E BLOCK CENTRAL SECREARIT ,NEW DELHI , DELHI
E BLOCK CENTRAL SECREARIT ,NEW DELHI , DELHI
3 UNION OF INDIA SECRETARY
MINISTRY OF LAW AND JUSTICE
4TH FLOOR ,A-WING SHASTRI BHAWAN NEW DELHI ,NEW DELHI , DELHI
4TH FLOOR ,A-WING SHASTRI BHAWAN NEW DELHI ,NEW DELHI , DELHI
4 INDIAN EMBASSY AMBASSADOR
DIPLOMETIC ENCLAVE ,ARABIAN GULF STREET P.O. BOX 1450 SAFAT 13015 KUWAIT
DIPLOMETIC ENCLAVE ,ARABIAN GULF STREET P.O. BOX 1450 SAFAT 13015 KUWAIT
18 July 2018 17
The Securities and Exchange Board of India
(SEBI) has clarified that activities of Heera Islamic Business Group, better
known as Heera Gold, are in the nature of Ponzi or multilevel marketing (MLM)
scheme. However, since these activities are beyond the ambit of SEBI and
Reserve Bank of India (RBI), the case has been referred to CID- Economic
Offences Wing (EOW), Enforcement Directorate (ED) and Commissioner of Police in
Hyderabad, SEBI said.
Replying to an email sent by Moneylife with
videos of panicky investors, the market regulator’s Hyderabad office wrote to
say, "Upon examination into the matter, it was found that the activities
of Heera Group are in the nature of Ponzi Scheme. Further, the nature of
activities of Heera Group was also discussed in the meetings of State Level
Co-ordination Committees (SLCC) of Andhra Pradesh and Telangana, which are
headed by Chief Secretaries of the respective states. It was decided in the
meetings of SLCC that the activities of Heera Group appear to be beyond the
regulatory ambit of SEBI and RBI and the case would be taken up for
investigation by relevant authorities such as CID-EOW, and Serious Frauds
Office of India (SFIO). Accordingly, SEBI had already referred the case to
CID-EOW, Enforcement Directorate, Commissioner of Police-Hyderabad."
The email further says, “As the matter is
presently being handled by Central Crime Station-Hyderabad, SFIO-Telangana, and
Enforcement Directorate-Hyderabad”, the regulator has sent the videos forwarded
by Moneylife to its Mumbai office to these respective agencies. SEBI has also
"marked a copy” to the Reserve Bank of India which is the nodal office for
State Level Coordination Committee.
Earlier this month, Moneylife had pointed out
the panic
among investors of Heera Gold, headed by Dr Aalima Shaikh Nowhera (Nowhera
Shaik). The trigger for people gathering to protest
at Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities was the
decision to 'share profit' once in three months instead of every month.
Heera Group claims to be a gold trading
company with business all over the world. In the past four years, the lack of
any enforcement action by investigation agencies has allowed it to grow rapidly
and diversify into diverse business. In the past two years Moneylife has raised
the issue of Heera Gold's Ponzi operations with two SEBI Chairman — Mr UK Sinha
as well as Mr Ajay Tyagi — because it operated like a vast collective
investment scheme. Neither of the two SEBI chairmen bothered to respond.
Our communication we said, "We hope SEBI will take note of this and
hasten action so that people do not end up losing money. Many women too are
being conned into borrowing against property to invest in these companies on
the claim that the returns would be significantly higher than the interest they
would pay on their loans."
The controversial and shadowy group has
specifically targeted the Muslim community with the promise of high returns and
constant references to ‘Allah’ to project itself as a devout and god-fearing
organisation. The panic among investors over the past weeks is due to delays in
making payments and a change in the payout dates. Several media reports and
investors say that its founder, Nowhera Shaik floated a political party, which
lost badly in the recent Karnataka elections, which has led to its financial
difficulties.
Typical of Ponzi operations that are in
trouble, she has released a video to allay fears of investors and run down
critics and those who are panicking at the payment delays.
Few days ago, several investors from
Hyderabad, Mumbai, Pune, Aurangabad from Maharashtra and Karnataka reached
Heera Gold's central office at Hyderabad. They wanted to know why there was
change in the payout scheme. However, instead of responding to issues raised by
investors, the staff at Heera Gold closed office doors from inside.
Heera Gold
investors panic over late payments and lack of answers about delays
Investors of Heera Islamic Business Group,
better known as Heera Gold, are in a panic over payment delays and rumours
about financial difficulties faced by the group, which has amassed vast sums of
money by specifically targeting the Muslim community by invoking the name of
“Allah” in its sales pitch. The trigger for people gathering to protest at
Heera Gold’s plush offices in Bengaluru, Hyderabad and other cities is the
decision to 'share profit' once in three months instead of every month. But
that is not the only issue.
Videos sent to us (SEBI) show that officials
at Heera Gold's corporate office at Hyderabad refused to meet people and had
locked the office from outside while staying inside. The controversial group is
under investigation by the Enforcement Department and the Serious Frauds Office
of India (SFIO) for several years, but the community continued to be lured by
the high monthly returns offered by its Ponzi-like business.
Interestingly, the group is headed by
Dr Aalima Shaikh Nowhera (Nowhera Shaik), Chief Executive of Heera Group, who
investors say is no longer in India. Typical of Ponzi operations that are in
trouble, she has released a video to allay fears of investors and run down
critics and those who are panicking at the payment delays. Source say that its immediate
financial troubles follow its foray into politics. In 2017, Dr Shaik, CEO of
Heera Gold formed the All India Mahila Empowerment Party under the banner of
justice for humanity. This party even contested 221 out of the 225 seats in the
recently concluded Karnataka Assembly elections with a 'diamond’ as its symbol.
It is rumoured to have lost large sums of money. This and other rumours has
triggered panic among people who want their money back.
Heera Group claims to be a gold trading
company with business all over the world. In the past four years, the lack of
any enforcement action by investigation agencies has allowed it to grow rapidly
and diversify into diverse business. In the past two years Moneylife has raised
the issue of Heera Gold's Ponzi operations with two SEBI Chairman — Mr UK Sinha
as well as Mr Ajay Tyagi — because it operated like a vast collective
investment scheme. Neither of the two SEBI chairmen bothered to respond.
Our communication we said, "We hope SEBI will take note of this and
hasten action so that people do not end up losing money. Many women too are
being conned into borrowing against property to invest in these companies on
the claim that the returns would be significantly higher than the interest they
would pay on their loans."
Investigations and information by a
premier government agency, perused by Moneylife, claim that Heera Gold is
involved in hawala activities. The note lists various actions against the
group. For instance, on 17 May 2014, the Hyderabad Police apprehended six
accused, while Heera Group promoter, Dr Shaik was named an absconding accused.
Subsequently, on 21 May 2014, the Enforcement Directorate (ED) searched Heera
Group premises and seized documents pertaining to the illegal transfer of money
through hawala.
Earlier, in August 2012, Asaduddin Owaisi,
Member of Parliament (MP) from Hyderabad, had reportedly registered a
case against Dr Shaik for cheating a large number of local investors from his
constituency.
The Heera Group began its operations in 2010
and since then, claims to have created 25 legal entities. Of these, only 10
were found to be registered on Registrar of Companies (ROC), Hyderabad and only
four are found to have filed Balance Sheets (FY2012-13), which are being
analysed. It is not registered under FCRA, says a government source.
A large number of PAN, TIN and other
State-level registration numbers are shown on its website and are under ED and
State Police investigation. These 10 companies have two sisters as Directors,
namely Dr Shaik and Mubarak Jahan Shaik. The third Director (in only three
companies) is another woman named Khamar Jahan Shaikh.
The Group claims to operate through over 19
companies in various business sectors, like gold trading, trading, textile,
jewellery, mineral water, granite, tours and travels, developers, electronics,
Hajj and Umrah services among others. Heera Group claims to have its offices in
Dubai, Saudi Arabia, Canada, China and Hong Kong. It markets itself as a trader
in gold products and gold dust.
Heera Group has deep ties with politicians
from Andhra Pradesh, which may have allowed it to flourish and expand investor
network across the country. In December 2017, its central office at Hyderabad was
inaugurated by Mohammed Mahmood Ali, Deputy Chief Minister of Telangana.
Several film personalities are also seen
hobnobbing with Dr Shaik on Heera Gold platform during its functions.
Few days ago, several investors from
Hyderabad, Mumbai, Pune, Aurangabad from Maharashtra and Karnataka reached Heera
Gold's central office at Hyderabad. They wanted to know why there was change in
the payout scheme. However, instead of responding to issues raised by
investors, the staff at Heera Gold closed office doors from inside.
Galli News from Hyderabad have also raised
several questions on Heera Gold change in payouts. Here is the video from Galli
News…
Earlier this week, Hyderabad-based Shahbaz
Ahmed Khan, who is vocal critic of Heera Gold's business model had filed a
complaint alleging life threats from Dr Shaik. Speaking with The Hans India, Khan had said that ever since he started questioning
about the ‘dubious’ nature of the business which offers investors a monthly
return of Rs3,000 per Rs1 lakh, he has been facing life threat from the
business woman-turned-politician. “At least three investors have approached me
to help them. Hence, I request the police department to enquire into the
businesses of the Heera Gold. For the past eight years, I have been facing
threat from the woman,” Khan was quoted as saying in the report.
We tried to call the company at several
numbers listed under an address at Banjara Hills, Hyderabad on its website but
they were all unreachable. The Heera
Gold complaints board reveals that most of the
financial problems and delays in crediting interest/profit share have started
in the past 3 or 4 months. Until then the board was inundated with questions
about how to invest in the group.
Some Writ Petitions have been filed against Heera Gold at High Court Hyderabad by Advocate Masood Khan.
Heera Gold Group Chairman filed number of false cases against social workers and other persons whoever tried to raise the issues against her Heera Gold Group, even she filed Defamation cases.
There are so many things, in coming days i will write full information for effected people informations.
Dr. Zulfiqar Ali Khan
Advocate
Supreme Court of India
MB: 9884102961
