HYDERABAD: The Enforcement Directorate’s Hyderabad zonal unit has completed the auction of an attached immovable property belonging to accused Nowhera Shaik of the Heera Group for Rs 19.64 crore. Registration in the buyer’s name was finalised at the sub-registrar’s office on Friday. The property was attached under a provisional order issued on August 16, 2019.
The ED is investigating Shaik and others under the Prevention of Money Laundering Act after multiple FIRs were filed in Telangana, Andhra Pradesh and Kerala. Investigators found that Shaik and her associates collected more than Rs 5,978 crore from investors after promising returns above 36%, but did not repay even the principal amount.
According to the agency, part of the funds was used to buy immovable assets in her name, the names of her companies and her relatives. Assets worth about Rs 428 crore have been attached. A prosecution complaint and a supplementary complaint have been filed before the Special PMLA Court in Hyderabad.
During PMLA proceedings and related hearings before the Supreme Court, the ED sought permission to auction attached properties so the proceeds could be returned to victims. With the court’s approval, several assets were listed for auction through MSTC. About Rs 25 crore has been realised so far, and Rs 68.63 crore is expected from successful bidders, taking the total expected realisation to Rs 93.63 crore. More auctions are planned.
The agency said sale proceeds will be used for victim restitution. Completion of registration for the Rs 19.64 crore property marks the close of this auction and moves the process towards transferring funds to affected investors.