SC allows ED to auction Ponzi scam co MD’s Rs 200 crore assets – Times of India

NEW DELHI: The Supreme Court has allowed the Enforcement Directorate to auction two properties worth around Rs 200 crore belonging to Heera Gold Exim Private Limited‘s director Nowhere Shaik accused of cheating investors in one ponzi scheme.
The order by Justices JB Pardiwala and R Mahadevan was welcomed by ED, which initiated the process for the return of properties to the victims to ensure that “substantial justice is provided to investors duped in the fraudulent investment scheme”.
The SC allowed the auction after Shaik came forward with a proposal to sell her assets.
She listed three properties: Naina Towers located in Banjara Hills in Hyderabad and with a market value of Rs 90 crore, Heera Foodex worth Rs 120 crore, and Heera Retail (Hyderabad) Pvt Ltd worth Rs 753 crore. However, the court allowed the sale of only the first two properties as some documents from the third were missing.
“We direct ED to auction both the properties in accordance with law. We allow ED to proceed with issuing an auction notice in accordance with the law, after a compensation price has been established. The compensation price will be determined after obtaining a report from a government approved appraiser,” the bench said.
The court gave her another three months to surrender in the case and directed her to deposit Rs 25 crore with the agency. The court had earlier quashed her bail.
The court also directed her to furnish full, correct and complete details of her encumbrance properties, which would also be put under the hammer to raise money to repay the investors. Shaik has been asked to provide details within two weeks.
“Once the information regarding other properties is provided to ED free of all encumbrances, it will at the earliest proceed to auction those properties also and try to recover maximum amount,” the SC said.