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 failure to raise Rs 580 crore to settle claims from defrauded investors in a high-profile financial scam. The ruling, made on October 18, comes after repeated warnings and extensions from the court, with little progress made on fulfilling the settlement conditions.
Court Rulings and Directives A bench consisting of Justices JB Pardiwala and Manoj Misra mandated that Nowhera Shaikh surrender within two weeks. The court also ruled that all pending First Information Reports (FIRs) against her across various states will now proceed under the law. Although her current bail has been canceled, Shaikh has been granted the option to reapply for bail in the future.
Initially, in January 2021, Nowhera Shaikh was granted interim bail under the condition that she would actively work towards resolving investor claims. However, despite numerous opportunities to comply, she failed to secure the required funds. The court had previously warned of severe consequences for non-compliance, which have now been enacted.
The Heera Gold Scam Heera Gold Exim Private Limited was implicated in a large-scale financial fraud, attracting public investments with promises of a 36% return. However, the company failed to meet its commitments, leading to widespread complaints across multiple states. The estimated value of the scam stands at around Rs 5,600 crore, affecting approximately 1.72 lakh investors from states including Telangana, Andhra Pradesh, Maharashtra, Karnataka, and Kerala.
The scam led to Nowhera Shaikh’s arrest and an investigation by the Serious Fraud Investigation Office (SFIO). The Supreme Court had previously directed that funds seized from Heera Gold could be used to compensate defrauded investors.
Failure to Comply In August 2024, the Supreme Court reiterated its order for Shaikh to submit a list of unencumbered properties and secure funds for investor settlements. However, during recent court hearings, no substantial updates were provided by her legal team.
The court’s latest ruling underscores its commitment to ensuring justice for investors and holding financial offenders accountable. As investigations by the SFIO continue, this case highlights the significant impact of economic crimes and the importance of judicial oversight in safeguarding public interests.
