India man arrested for trying to derail Heera Group probe that affected UAE investors

India’s federal anti-money laundering agency has arrested a man accused of impersonating a government consultant and attempting to interfere with the ongoing investigation into the Heera Group, a case that has affected thousands of investors in India and the UAE.

In a statement issued on Monday, the Enforcement Directorate said its Hyderabad zonal office arrested Kalyan Banerjee on January 10 in connection with an investigation under the Prevention of Money Laundering Act (PMLA), 2002.

The arrest relates to the long-running probe into the Heera Group and its founder Nowhera Shaik, who is accused of collecting more than Dh2.45 billion from the public by promising returns of over 36 per cent annually, before allegedly defaulting on repayments.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

According to the ED, Banerjee was hired by Shaik after repeated legal attempts to block the auction of properties attached in the case failed. Indian authorities have been seeking to auction confirmed attached assets so that proceeds could be restored to victims of the alleged fraud.

The agency said Banerjee falsely projected himself as being close to senior bureaucrats and politicians and contacted ED officers in an attempt to manipulate or delay the auction process. When told to follow due process, he allegedly began threatening officers and pressuring them to stall proceedings.

Searches conducted at his premises in Secunderabad on January 10 led to the seizure of mobile phones containing WhatsApp chats with Shaik and her associates, the ED said. Investigators allege the messages revealed efforts to influence investigative and judicial processes and to facilitate the sale of properties acquired through alleged proceeds of crime.

In his statement recorded under the PMLA, Banerjee admitted to impersonation and said he acted on the directions of Shaik and her associates, the ED said, adding that he knowingly assisted in activities linked to proceeds of crime.

He was produced before the 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 also moved the Supreme Court to allow auctions of confirmed attached assets for restitution to victims.

Last month, the Telangana High Court dismissed a petition filed by Shaik seeking to stall an auction and imposed exemplary costs of Rs5 crore (Dh2 million) directing that the amount be deposited in the Prime Minister’s relief fund.

The collapse of the Heera Group has had a significant impact on investors in India and the Middle East, particularly the UAE, where many expatriates invested in the group’s schemes.

Previous Khaleej Times investigations documented how investors across Dubai, Sharjah and Abu Dhabi were left facing heavy losses, with recovery efforts closely tied to the outcome of asset auctions in India.