The Supreme Court on Wednesday issued a stern ultimatum to Nowhera Shaik, the managing director of Heera Gold Exim Private Ltd, accused of a massive ₹5600 crore gold investment scam. The court demanded that Shaik deposit ₹25 crore within the next three months or face incarceration, with the Enforcement Directorate (ED) directed to take her into custody if the amount is not paid.
Justice JB Pardiwala, leading the bench, emphasized that this directive serves as a final opportunity for Shaik to comply with the court’s orders, which have been ongoing since November 11, 2024. The court expressed frustration with Shaik’s continued defiance and non-compliance with successive orders, highlighting the gravity of her alleged financial misconduct affecting lakhs of investors across several states.
During the proceedings, Shaik’s counsel, senior advocate Kapil Sibal, admitted that his client claimed incapacity to pay the demanded amount. However, the ED countered this claim by revealing that several properties owned by Shaik had been attached, noting discrepancies in the list of unencumbered properties previously submitted to the court. The ED was permitted to auction two of these properties located in Telangana.
The court also cautioned Shaik against misleading practices, such as advertising properties for sale which could potentially deceive the public. “We direct the accused not to engage in the advertisement of any property through her companies. If any advertisement is issued, that will be enough to send her back to jail,” the bench stated.
Advocate Annam Venkatesh, representing the ED, requested additional time to conduct the auctions, estimating the combined value of the two properties at over ₹100 crore. The court has scheduled a follow-up hearing in July to review the situation and enforce the directive.
This case highlights ongoing challenges in managing large-scale investment frauds, where recovery and restitution to investors remain complex and often unsatisfactory. Senior advocate Dushyant Dave, representing the Telangana government, pointed out the broader issues with such investment schemes, referencing the long-drawn Sahara debenture scheme case as a parallel, where a significant portion of the aggrieved investors remains unpaid.
