The Directorate of Enforcement (ED) in Hyderabad, Telangana state, has Nowhera Shaik over alleged fraud of INR30 billion (USD314.42 million) after thousands of investors filed complaints that sparked an investigation.
The ED arrest was made under the provisions of anti-money laundering laws and is part of an ongoing investigation. The ED was acting on first information reports registered against Shaik, Molly Thomas and the Heera Group of companies by depositors and investors from across the country.
It is alleged that Shaik had fraudulently collected money from investors on the pretext of investment into Heera Group of companies, offering returns of 36% per annum. Shaik and other co-accused diverted funds to their personal accounts, creating wrongful gains that included several movable and immovable properties.
The ED identified several of these properties as proceeds of crime and have been attached in the present case.
It also Supreme Court of India to auction some of the properties identified as proceeds of crime. The ED secured INR1.22 billion from the auction, but Shaik obstructed the proceedings and refused to co-operate to complete the sales.
In response, the court Shaik to surrender before the jail authorities, but Shaik did not comply with the directions.
After authorities cancelled her bail and issued arrest warrants, Shaik had fled. She was found in Gurugram, Haryana state, using the identity of one of her associates, where she was arrested and brought before the authorities in Hyderabad.
Shaik has been remanded to judicial custody and further investigations in the case are ongoing.
