The apex court’s decision marks a turning point in the long-standing legal battle surrounding the estimated ₹5,600 crore Ponzi-style scheme run under the guise of halal investment
NEW DELHI/HYDERABAD — In a major development in the Heera Gold scam case, the Supreme Court has cleared the way for the Enforcement Directorate (ED) to initiate action against Nowhera Shaikh, founder of the Heera Group. The court also authorised the ED to auction two of Shaikh’s unencumbered properties in Hyderabad to compensate thousands of defrauded investors.
The apex court’s decision, delivered in a recent hearing, marks a turning point in the long-standing legal battle surrounding the estimated ₹5,600 crore Ponzi-style scheme run under the guise of halal investment. The two properties — Naina Towers and Heera Foodex — will be sold by the ED, with proceeds directed toward partial repayment of victims who were lured into investing with promises of high monthly returns.
The court also issued a stern ultimatum to Shaikh, directing her to deposit ₹25 crore within three months or face immediate arrest. The Supreme Court had earlier revoked her bail in October 2024 after she failed to fulfill her commitment to raise and return ₹580 crore to investors. With this latest order, the court made it clear that failure to meet the ₹25 crore repayment will automatically lead to cancellation of bail and custodial action by the ED.
The ruling comes after years of complaints from investors — many of them women from the Muslim community — who claimed they were duped by Heera Group’s ‘Sharia-compliant’ investment model. Investigations by the ED and other agencies revealed a complex web of financial irregularities, with new investments being used to pay old investors — a classic Ponzi scheme setup.
Investor advocacy groups have welcomed the Supreme Court’s decision, calling it a step toward justice. “People have waited for years for their money. This order brings some hope that recovery might begin,” said one Hyderabad-based petitioner representing over 1,000 victims.
Meanwhile, sources in the ED confirmed that the auction process for the identified properties has already been initiated and is expected to be completed within the next few months. The agency is also reportedly preparing to attach additional assets, should the need arise for further recovery.
Nowhera Shaikh, who had launched a short-lived political party and often projected herself as a philanthropist and businesswoman, now faces mounting legal and financial pressure. Her lawyers have not yet commented on the Supreme Court’s latest order.
As the deadline for the ₹25 crore deposit nears, all eyes are on whether Shaikh will comply or face arrest — and whether thousands of small investors will finally see any return of their lost funds.
