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Hyderabad, Nov 21 (IANS) The Enforcement Directorate (ED), Hyderabad zonal office, has successfully auctioned the attached immovable property of Nowhera Shaikh (Heera Group of Companies), accused in the case of defrauding investors of over Rs 5,978 crore, for Rs 19.64 crore. An official gave this information on Friday.
The auction of the attached property and its registration in the name of the buyer was completed before the sub-registrar office on Friday, the official said in a statement.
The property was attached by the ED through a provisional attachment order dated August 16, 2019.
The sale proceeds collected by ED from the auction of attached properties will be used for restitution/rehabilitation to the victims/investors of the fraud committed by Nowhera Shaikh, Heera Group of Companies and others.
The registration of the disputed auction property worth Rs 19.64 crore in the name of the successful bidder marks the completion of the auction process in respect of the said property and will pave the way for restitution of auction proceeds to future victims of the fraud, the statement said.
The ED is investigating the case under provisions of the Prevention of Money Laundering Act (PMLA), 2002, against a woman, accused Nowhera Shaikh and others on the basis of multiple FIRs lodged by police officials of Telangana, Andhra Pradesh and Kerala.
The investigation by police officials, inter alia, revealed that Nowhera Shaikh and others had collected investments of over Rs 5,978 crore from the gullible public with the promise of high returns of more than 36 per cent per annum.
However, the accused failed to return even the principal amount, thereby defrauding innocent investors.
The ED investigation revealed that Nowhera Shaikh had used a part of the crime proceeds to purchase various immovable properties in his name, the name of his companies and in the name of his relatives.
During the investigation, assets worth Rs 428 crore have been attached by the ED and the prosecution complaint as well as supplementary prosecution complaint has been filed before the Special PMLA Court, Hyderabad.
–IANS
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