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UAE residents who lost life savings find hope as India's Supreme Court orders Heera Group property auction

The group marketed three high-return investment plans in the Emirates, attracting investors who took out loans to participate

UAE residents who have invested their life savings in Heera Group's 'schemes' have expressed relief after India's Supreme Court issued an order on Monday directing the auction of two properties owned by Heera Group's managing director, Nowhera Shaikh. This auction will help recover funds for defrauded investors.

The court also mandated that Shaikh deposit Rs250 million (Dh11 million) with India’s Enforcement Directorate (ED) within three months as part of ongoing efforts to compensate those affected by the alleged Ponzi scheme.

The decision has sparked cautious optimism among hundreds of UAE investors who trusted the alleged fraud scheme. Among the affected investors are Nasim Rajab from Abu Dhabi, MK from Dubai, and Shahid Khan from Sharjah, who had invested Dh120,000, Dh90,000, and Dh75,000, in the company’s now-defunct plans.

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"I'm finally seeing a glimmer of hope after 6-long years," said the Dubai resident.

Heera Group marketed three investment plans in the UAE: Heera Gold, which promised monthly payouts of Dh3,250 for a minimum investment of Dh100,000 with a one-year lock-in period; Heera Textiles, offering annual returns of 65-70 per cent on a minimum deposit of Dh15,000 with a two-year lock-in period; and Heera Foodex, promising annual profits of up to 80 per cent on a Dh15,000 deposit with a two-year lock-in period. Lured by the high returns, many investors even took out bank loans to participate in these schemes.

In 2018, when the promised returns stopped coming, Heera Group collapsed, and Nowhera Shaikh was arrested. Alarmed by the developments, many UAE investors rushed to Heera Group's office in Jumeirah Lake Towers, only to find it locked. Visits to warehouses in Ras Al Khaimah and Sharjah also yielded no answers, deepening the sense of betrayal and uncertainty among investors.

Last month, India's Apex court cancelled Shaikh's bail due to her failure to raise Rs580 crore (Dh252 million) to settle outstanding claims through property auctions. She was ordered to surrender within two weeks. However, in Monday's hearing, her counsel requested an extension, which the court approved, giving her additional time as her case continues through the legal system.

Shahbaz Ahmad Khan, a whistleblower and president of the All India Heera Group Victims Association, welcomed the court's decision but warned that many investors would still miss out. Khan emphasised that only those who filed claims with India's Serious Fraud Investigation Office (SFIO) would receive funds from selling Shaikh's properties.

"Investors who have filed claims, whether in the UAE or India, will be reimbursed from the proceeds of the property sale," Khan told Khaleej Times over the phone. "But those who didn't file claims with the SFIO are out of luck. It's game over for them. They should have acted when they had the chance."

In November 2022, following a Supreme Court directive, the SFIO published advertisements urging investors to submit claims with supporting documents. However, by November 2022, only 6,788 claims worth Dh159 million had been received, far below the Dh2.5 billion (Dh2,545 million) invested by over 175,000 people, according to Indian police.

Former school bus driver Shahid Khan, who has submitted his claim, expressed hope while reflecting on his difficult journey. "The last few years have been a real struggle," he said. "It’s not easy for a school bus driver to save Dh75,000. That was everything I had."

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