Heera Group Word

Heera Group –Where Business Ethics Are Trampled
Nadeem Ahmed - M.A.M V YEAR

140214683027
The Heera Group, a consortium of twenty companies is a

name well established in India, Saudi Arabia, Kuwait, UAE, other countries of the
Gulf, west Africa, China and Canada. An interest free, value based and socially
responsible business enterprise is the company’s stated ideal. The logo of the
company is ‘In the interest of All Mankind’.
This business enterprise was initially set up by Dr. Nowhera Shaik, investing
majorly in gold importing. The Heera Group expanded and diversified into
various sectors like Gold, Trading, Textile, Jewelry, Mineral Water, Granite, Tours
and Travels, Real Estate, Electronics, E-commerce etc.
In 2015, Heera Group launched two of its projects: Heera Foodex and
Heeradeals.com. Heera Foodex manufactures, trades and export premium food
products, in international market and Heeradeals.com provides an online
shopping platform in a range of lifestyle and consumer products for residents of
UAE .
Dr.Nowhera Shaikh is an Indian Politician, founder & President of the All India Mahila
Empowerment Party and Businesswoman and entrepreneur and founder and CEO of the Heera
Group. Heera Group is a consortium of twenty companies with it headquarters at Hyderabad, with
branches across India, UAE and other middle eastern countries. She is the lifetime Vice-President of
the women’s wing of the International Human Rights Association-India. Nowhera Shaik is also
an educationist and her achievements in the field include a number of educational institutions under
her aegis and various awards. She was awarded the Rajiv Gandhi Shiromani Award for Outstanding
Individuals and Distinguished Services to the Nation, The Mumbai Ratan Award, 2013, For
Outstanding Contribution in the field of Education and Human Service, and the Bharat Gaurav Award,
2014
The book, which contains profiles of entrepreneurs and professionals from India, does include a
chapter on Nowhera but she’s nowhere in the official pictures.
So, what did she do to make up for her absence, She simply photoshopped herself?
“Who would have thought she would use a photo editing software to show herself alongside an
Indian minister,” said a Dubai resident who lost Dh200,000 in her Ponzi scheme.
Having mastered the art of deceit and falsehood, Nowhera used the same tactics when she launched
the All India Mahila Empowerment Party (MEP) and contested the 2018 Karnataka assembly
elections.
HOW DID HER BUSINESS FLOURISH?

She started her venture Heera Group of Companies by collecting deposits in 2010.
She promised the investors that they would get 36% interest per year for every 1 lakh rupees
they invest.
She initially gave the promised money to the investors, only to allegedly cheat them later.
Nowhera, later expanded her business to several countries and states and cheated investors
following the same modus operandi, before any enforcement agency could suspect a scam. To
evade suspicion, she had floated 17 companies under different names and cheated investors
estimated to, according to sources she had whooping 2 lakhs plus investors across the southern
and western states, and have a combined turnover of over Rs 1,000 crore.
"Many of the companies are involved in collection of deposits and investment in different modes
of gold scheme from public, where there companies commit a return of around 36% per annum
for the invested amount. While exact number of investors, depositors is not known because the
companies have not disclosed complete information which indeed comes to the amount of
Rupees 20,000 crore.
WHAT ATTRACTED PEOPLE?
Used a combination of religious symbolism, Ulemas, fake propaganda and political tools to attract
investors in Hyderabad.
In these ‘Halal’ offers, even more attractive than the Halal factor was the ridiculously high returns
they promised to their investors. This, coupled with religious scholars who were too happy to
promote such companies meant that Muslim investors came in hundreds. Such smart marketing
embedded with lies and deceit meant that these companies were easily able to fool people.
Muslims are taught that ‘riba’ or usury is haram (prohibited) in Islam. And while thousands of
Muslims who are cautious and keen to invest in halal (permitted) schemes find themselves with
plenty of options these days, but often the legitimacy of these options is assessed more on blind
faith than sound reasoning.
And then of course, there were the returns. Once people started investing, they began to get the
promised returns which was beyond their expectations. Soon, Heera Gold business started
expanding solely through word of mouth. Most of the people opted for the Gold scheme because of
its monthly returns, hence the company gained its ‘Heera Gold’ name which was also the first
venture of Dr Shaikh.
Business Tycoon to Fraudulent Business?
Trouble first appeared for the Group in 2012 when the police received the first complaint and that
too from a Hyderabad VIP. Member of Parliament Asaduddin Owaisi claimed that a large number of
investors from his constituency were cheated. Subsequently, the police investigated the matter but
did not find enough evidence to take any action against Dr Shaikh.
In 2014, the company came under the scanner for illegal transfer of money through ‘havala’.
Shaik was arrested on charges of cheating investors. This sparked panic among investors, largely
from Hyderabad, who made big investments in her so-called gold business. Some of them were contacting local
representatives of the group to demand their money back.
In fact, some of them put in their life savings too. The group, which has its presence in Saudi Arabia, United
Arab Emirates and other Gulf nations, collected deposits from NRIs mainly from Hyderabad and other parts of
Telangana.
According to some investors, the company promised them up to 35 per cent annual returns. “They told us they
will invest our money in gold and textiles and give us monthly profits. We received regular monthly profits
for some time, but later it stopped,” another investor said.
Present scenarios
The ‘Mother Of All Scams’ – Heera Group’s Nowhera Shaikh Facing
Serious Cheating Charges In Eleven States In India

The Securities and Exchange Board of India (SEBI) has clarified that activities of Heera Islamic Business Group,
better known as Heera Gold, are in the nature of Ponzi or multilevel marketing (MLM) scheme. However, since
these activities are beyond the ambit of SEBI and Reserve Bank of India (RBI), the case has been referred to
CID- Economic Offences Wing (EOW), Enforcement Directorate (ED) and Commissioner of Police in Hyderabad.
The Central Crime Station sleuths of Hyderabad, who are probing the alleged fraud committed by the Heera
Group of companies amounting to about Rs 6,000 crore, have recovered data of 1.7 lakh investors. The police
have sent the records to the Forensic Science Laboratory for further analysis of the data recovered from the
servers belonging to the company run by Nowhera Shaik.
After the arrest of Nowhera Shaik, the CCS police have ensured freezing of 160 bank accounts opened by the
company, to help its operations of collecting investments from the public, on the pretext of providing high
returns.
About 25% of the total amount invested by individual investor applying for withdrawal will be
returned in first four months along with profits that was to be paid quarterly. She said 25% of
total amount will be released every four months.
Nowhera has shown her intentions to the court and also to investors. Everyone was calling her a
cheat, but a cheater won’t file a sworn affidavit in the court.
REFERENCE
WWW.TIMESOFINDIA.COM
WWW.ECONOMICTIMES.COM
WWW.MONEYLIFE.IN
WWW.THEHINDU.COM
WWW.FT.COM

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Heera Group –Where Business Ethics Are Trampled

Nadeem Ahmed - M.A.M V YEAR

The Heera Group, a consortium of twenty companies is a

HOW DID HER BUSINESS FLOURISH?

Business Tycoon to Fraudulent Business?

The ‘Mother Of All Scams’ – Heera Group’s Nowhera Shaikh Facing

Serious Cheating Charges In Eleven States In India

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