The Supreme Court has directed the Registrar General of the Telangana High Court to identify judicial officers who can execute sale deeds for properties attached in the Heera Gold case, after the Enforcement Directorate (ED) alleged that the firm’s founder, Nowhera Shaik, was obstructing the registration process of auctioned assets.
The directions were issued during a hearing on Tuesday, July 21, after the ED informed the apex court that the registration of auctioned properties was essential to realise funds and distribute the proceeds among investors who allegedly lost money in the multi-crore scam.
During the proceedings, the Supreme Court initially suggested that Shaik, who is currently in judicial custody, could be escorted to the office of the concerned sub-registrar to complete the registration formalities before being taken back to prison.
ED opposes proposal
However, appearing for the ED, counsel Venkatesh opposed the proposal, submitting that Shaik had been given several opportunities since 2024 to facilitate the registrations but had failed to cooperate. The agency alleged that whenever she gained access to property documents, individuals associated with her contacted people outside prison and intimidated prospective buyers.
The ED informed the court that the auction involved 46 properties, of which 16 are located in Telangana, requiring registrations before the respective local authorities.
Taking note of the submissions, the Supreme Court directed the Telangana High Court Registrar General to provide a list of officers who could be authorised to execute the sale deeds in place of the accused. The court indicated that designated judicial officers may be entrusted with the task to ensure that the registrations are completed without further delay.
The ED said the exercise would enable the sale proceeds to be collected and distributed among investors.
According to the agency, Nowhera Shaik is accused of running a Ponzi scheme through the Heera Gold group, allegedly collecting deposits from more than 1.72 lakh investors and causing losses estimated at Rs 5,978 crore. The ED has alleged that the companies under the Heera Gold umbrella carried out little or no genuine business activity and used funds from new investors to pay returns to earlier investors.
The agency further alleged that around Rs 3,265 crore was diverted into personal accounts and used to acquire immovable properties in the names of Shaik and her family members. Shaik was arrested by the ED after the agency accused her of failing to comply with court directions in the ongoing investigation.
