Hyderabad, Aug 16 (UNI)The Enforcement Directorate (ED) officials on Friday said it has attached 299.99 crore worth assets belonging to Nowhera Shaik, the owner of Hyderabad-based Heera group of companies under the Prevention of Money Laundering Act (PMLA), 2002.
The attachment order was given in a case of ponzi fraud involving a Telangana-based multi-level marketing Group.
The 96 properties attached by the authorities are located in Telangana, Kerala, Maharashtra, Delhi and Andhra Pradesh worth Rs 277.29 crores in form of farmlands, commercial plots, residential buildings and commercial complexes and bank account balances to the tune of 22.69 crore were also attached, the ED said in a statement.
The probe was undertaken based on the criminal cases registered by the Central Crime Station of Hyderabad Police Commissionerate, it said .
Petitioners alleged that Ms Shaik had started different companies under M/s Heera Group and collected unauthorised deposits of nearly 5,600 crore from the people.
Nearly 1,72,000 persons from different parts of the country invested in the companies which hired a network of marketing executives and direct selling agents. These agents collected deposits with false promises of high interest returns of 36 per cent a year.
She allegedly floated different schemes and collected funds through extensive advertising.
She launched 24 firms/entities under Heera Group and 182 bank accounts were opened in different banks at different parts of the country in the name of these two dozen entities, the ED alleged.
Ten bank accounts were also opened in foreign countries such as UAE, Saudi Arabia for collecting these deposits and Shaikh did not possess any valid permission either under the Banking Regulation Act, Companies Act, RBI Act. There was no consent from other agencies like SEBI, the ED alleged.
According to investigators, Ms Shaik, along with her family and close aides, diverted the depositors' money into personal bank accounts and purchased massive immovable and movable assets allegedly for wrongful gains. The deposits were eventually transferred into shell companies.
Authorities said money was also used to purchase benami assets.
She started various businesses in gold, food and textile to convince depositors of high returns. But in reality, she was paying them from the cash flow generated by the newly joining members and investors, it added.
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