Where is the money: SC cancels Nowhera Shaikh's bail over Rs 580 cr scam

Hyderabad: The Supreme Court of India has revoked the bail of Nowhera Shaikh, the managing director of Heera Gold Exim Private Limited, due to her inability to raise Rs 580 crore to settle claims made by investors, October 18.

The court noted a lack of substantial progress in fulfilling its previous directives.

Court’s decision and directives

The bench, comprising Justices JB Pardiwala and Manoj Misra, mandated Nowhera Shaikh to surrender within two weeks.

The court emphasized that all First Information Reports (FIRs) registered against her in various states would now proceed according to the law. Although her bail has been canceled, the court clarified that Shaikh can apply for bail again in the future.

In January 2021, Nowhera Shaikh was initially granted interim bail on the condition that she would work towards settling the claims of defrauded investors.

Despite multiple extensions and opportunities provided by the court, she failed to raise the required funds. The Supreme Court had previously warned that non-compliance would result in serious consequences, including potential incarceration.

Heera Gold scam

Heera Gold Exim Private Limited was embroiled in a massive financial scandal involving allegations of fraud and cheating. The company attracted public deposits by promising an enticing 36 percent return on investment.

However, when it failed to honor these commitments, numerous complaints were filed across several states, leading to Nowhera Shaikh’s arrest and an investigation by the Serious Fraud Investigation Office (SFIO).

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The total amount involved in the scam is estimated to be around Rs 5,600 crore, affecting approximately 1.72 lakh investors across states such as Telangana, Andhra Pradesh, Maharashtra, Karnataka, and Kerala.

The Supreme Court had previously directed that funds seized by various agencies from Nowhera Shaikh’s company could be utilized for repaying defrauded investors.

Failure to comply with court orders

In August 2024, the Supreme Court had reiterated its expectation for Shaikh to submit a list of unencumbered properties and raise the necessary funds for investor settlements.

However, during recent hearings, no positive updates were provided by her counsel regarding these obligations.

The court’s latest ruling reflects its ongoing commitment to ensuring that investors receive their rightful dues while also addressing the legal ramifications of Nowhera Shaikh’s actions.

The SFIO has been actively pursuing investigations into the matter, highlighting the serious nature of economic offenses and their impact on countless individuals.

As this case progresses, it underscores the critical importance of accountability in financial dealings and the judicial system’s role in protecting investors’ interests.

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