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UAE residents who lost 'everything' to massive fraud can still recover their investments, says whistleblower

Investors, regardless of whether they handed over money in India or the Middle East, are urged to file claims against Heera Group

A whistleblower in a multi-million-dollar Ponzi scheme that defrauded investors across Southeast Asia and the Middle East has urged victims in the region to file claims with India's Serious Fraud Investigation Office (SFIO) to recover their funds.

The Heera Group, once presented as a thriving conglomerate with businesses in gold trading, textiles, and food services, lured tens of thousands of investors with promises of high returns. Claiming to offer halal investment opportunities, the group operated extensively across India and the Middle East, but investigators have since uncovered it as a massive fraud.

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Shahbaz Ahmad Khan, president of the All India Heera Group Victims Association, spoke to Khaleej Times during a visit to Dubai. He said investors, regardless of whether they handed over money in India or the Middle East, can still recover their funds if they provide the necessary proof.

"Investors need to get their documents, including bank statements, identity proof, copies of payment receipts, or units purchased from Heera Group, notarised and send them to the SFIO's Telangana office by post," Khan explained. He cited a Saudi-based investor who had invested SAR 2.25 million (Dh2.20 million) with Heera Group's Riyadh office and is now listed for repayment following a court-mandated liquidation of properties.

Former Sharjah school bus driver Shahid Khan, who has retired and moved back to India, said the SFIO has approved his claim for investments made in the UAE and India. Khan had invested Dh75,000 with Heera Group in the UAE and another Rs15 lakh (Dh65,000) in India. Speaking over the phone from Kolkata, he said, "I'm keeping my fingers crossed. It was everything I had."

Nasim Rajab from Abu Dhabi, MK from Dubai, and Shahid Khan from Sharjah are among those who invested their life-savings in the company's defunct plans.

Earlier this month, India's Supreme Court ordered the auction of two properties owned by Heera Group's managing director, Nowhera Shaikh, to pay off investors. Additionally, Nowhera has been directed to deposit Rs250 million (Dh11 million) with India's Enforcement Directorate (ED) within three months as part of ongoing compensation efforts.

According to Khan, Heera Group marketed three investment plans in the Middle East: Heera Gold, Heera Textiles, and Heera Foodex. These plans attracted tens of thousands of investors, including between 50,000 and 100,000 from the region alone.

Khan pointed out that investors pursuing legal action in the UAE may need to factor in the high costs involved. "Claimants in Dubai must pay a deposit of 6 per cent of their total claim as a court fee, capped at Dh40,000, along with other expenses like legal fees and translation costs. They don't need to take this route," he said.

Hossam Zakaria, a senior legal counsel in Dubai, explained that pursuing civil claims in such cross-border investment fraud cases presents significant challenges. "While UAE courts have jurisdiction over local transactions, the absence of registered assets or financial guarantees in the UAE significantly limits the enforceability of potential judgements," Zakaria said.

"Furthermore, as Heera Group operated without proper regulatory licences in the UAE, investors face additional hurdles in establishing the legal basis of their investments under UAE Federal Law No. 4 of 2000 concerning the Emirates Securities and Commodities Authority and Federal Decree Law No. 14 of 2018 regarding the Central Bank," he added. Zakaria advised UAE-based investors to coordinate with Indian authorities through proper diplomatic and legal channels, particularly through the SFIO's established claim process.

"This would likely prove more cost-effective and have a higher probability of recovery than initiating separate proceedings in UAE courts, which would require substantial upfront costs without guaranteed enforceability of judgments."

India's Enforcement Directorate has identified more than 160 bank accounts and assets worth Dh154 million linked to the Heera Group across India. Investigators have also traced Dh2.88 billion illegally collected from more than 172,000 investors. According to the Enforcement Directorate, the company operated ten bank accounts in the UAE and Saudi Arabia, where victims deposited funds in anticipation of returns as high as 36 per cent annually.

Despite the challenges, Khan stressed that filing a claim with the SFIO is still the most viable option for Middle East investors. "It's late, but it's not impossible. This is their best chance, and the process is inexpensive," he said.

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