India Arrests Man for Allegedly Trying to Derail Heera Group Probe
Enforcement Directorate says suspect impersonated government consultant to interfere with asset auctions tied to Dh2.45bn case
India’s federal anti-money laundering agency has arrested a man accused of attempting to obstruct the ongoing Heera Group investigation, a high-profile case that has affected thousands of investors in India and the UAE.
In a statement issued on Monday, the Enforcement Directorate (ED) said its Hyderabad zonal office arrested Kalyan Banerjee on January 10 under the Prevention of Money Laundering Act (PMLA), 2002. Authorities allege Banerjee impersonated a government consultant and sought to interfere with official proceedings linked to the Heera Group probe.
The case centres on the Heera Group and its founder, Nowhera Shaik, who is accused of collecting more than Dh2.45 billion from the public by promising annual returns exceeding 36 per cent, before allegedly defaulting on repayments.
According to the ED, Banerjee was engaged by Shaik after multiple legal attempts to block the auction of attached properties failed. Indian authorities have been pursuing auctions of confirmed attached assets to enable restitution to victims of the alleged fraud.
Investigators allege Banerjee falsely claimed proximity to senior bureaucrats and politicians and contacted ED officials in an attempt to influence or delay the auction process. When asked to follow due legal procedures, he allegedly began threatening officers and pressuring them to stall the proceedings.
Searches carried out at Banerjee’s premises in Secunderabad on January 10 resulted in the seizure of mobile phones containing WhatsApp conversations with Shaik and her associates, the agency said. The ED alleges the messages revealed attempts to influence investigative and judicial processes, as well as efforts to facilitate the sale of properties acquired through alleged proceeds of crime.
In a statement recorded under the PMLA, Banerjee admitted to impersonation and said he acted on the directions of Shaik and her associates, according to the ED. The agency added that he knowingly assisted in activities linked to proceeds of crime.
Banerjee was produced before a special PMLA court in Nampally on January 11 and has been remanded to judicial custody until January 23.
The ED has previously said it attached properties worth around Dh175.5 million in the Heera Group case and filed prosecution complaints before the special PMLA court in Hyderabad. The agency has also approached India’s Supreme Court seeking permission to auction confirmed attached assets so the proceeds can be returned to victims.
Last month, the Telangana High Court dismissed a petition filed by Shaik to halt an auction and imposed exemplary costs of Rs5 crore (Dh2 million), directing the amount to be deposited into the Prime Minister’s relief fund.
The collapse of the Heera Group has had far-reaching consequences, particularly for investors in the Middle East. In the UAE, many expatriates were among those who invested in the group’s schemes, making the case one of the most closely watched financial fraud investigations affecting UAE investors in recent years.