IC: August 2019

This is a study material compiled to understand the fight between All India Heera Victims Association and Heera Group of Companies in Telangana High Court.

Heera Group claims they have not taken any deposit from any individual. During the initial years of functioning, Heera Group of Companies issued Share Certificates (2007 to 2012) to depositors, then switched to issuing Membership Certificates (2012 to 2014 August), and then switch to issuing Unit Purchase Certificates (2014 onwards). These transitions were done to escape the Depositors’ act; a long term plan.

Videos of Share Certificates and Membership Certificates

Video No. 1 is a video recorded by Heera Group of Companies as an advertisement of their new first office opened in Hyderabad quite a couple of years ago. This video has proof that Heera Group had issued share certificates. Video No. 2 is a video recorded by a Bhiwandi Investor who had put on display his Membership Certificates when Thane EOW suggested that its submission in court or claim would not yield anything to the claimant.

Video #1 – Share Certificates – Head Corporate Office Hyderabad

https://youtu.be/3z12JJfVcko

Video #1 Explained: Heera Group opened a new office in Hyderabad. One of the employees is seen holding a Share Holder Application Form. Establishes issuance of Share Holding Certificates. Image #1 below shows original Share Certificates.

Video #2 – Membership Certificates Video of Investor, Bhiwandi, Thane

https://youtu.be/rLVRyn84J2U

Video #2 Explained: The Investor holding membership certificate is complaining that Thane EOW is not admitting his complaint because he has been returned his invested money through the monthly profit/benefit from Heera Group. This investor just recently managed to file his claim in Thane EOW. Thus establishing issuance of Membership Certificates to Investors. Image #2 below shows original Membership Certificate.

The Bhiwandi complainant, however, recently managed to register his claim in Thane EOW. Below two images (Image a and Image b) are proof of his claim registration.

Image a – Bhiwandi Claim Registered

Image b – Bhiwandi Claim Registered

Images – Share Certificates, Membership Certificates, Unit Purchase Receipts

The three images below are proof of the transition attempted by Heera Group of Companies.
1. Share Certificates - 2007 to 2012
2. Membership Certificates - 2012 to 2014
3. Unit Purchase Receipts - 2014 to 2018

Image #1 - 2012 - Share Certificate

Image #2 - 2013 - Membership Certificate

Image #3 - 2015 - Unit Purchase Receipt

Other Images - Membership Certificates
Below are a few more Membership Certificates that we collected from regular investors. Most of them were not allowed to register their claim in EOW and the reason given was that since there was no business of Heera Group, i.e., Ponzi, then eventually those who have received back equal to more than the investment, need not register their claim as law would not be able to get that their capital back.

Other Images - Membership Certificate 1

Other Images - Membership Certificate 2

Other Images - Membership Certificate 3

Other Images - Membership Certificate 4

Other Images - Membership Certificate 5

Other Images - Membership Certificate 6

What Heera Group has been trying to do - Investors to Customers
When Heera Group issued Share Certificates (2007 to 2012), Share Holders started questioning whether Heera Group were listed with SEBI and whether their shares have an exchange platform where it could be traded. This was the reason for Heera Group to switch the Investors from Share Holders to Members. The questions still continued as Members questioned whether they had some extra privilege becoming Members of Heera Group.

The wiser lot either did not invest or withdrew their deposition when they did not get correct answers from Heera Group. Heera Group realized that as long as these depositors would be Share Holders or Members, the questions would keep on popping up, and so they decided to switch from issuing Membership Certificates to Unit Purchase Certificates, and Nowhera Shaikh tried to change the narrative. Investors were no longer Share Holders or Members, they became Unit Purchasers.

Video #3 - Advocate Tamanna Says there are no Investors

Nowhera says MPID does not apply
https://youtu.be/_sUfTuoF5r8

Video #3 Explained: In the below video, Heera Group advocate Tamanna Shaikh says that there are not investors, and Heera Group had only customers with them. And then Nowhera Shaikh says MPID act does not apply to her case. This makes it clear that Heera Group of Companies wants to tell the court that they have not taken any investments. All that they had were Gold Customers.

Video #4 - Nowhera Shaikh says no Investors, only customers
https://youtu.be/KEjIDMlb45U

Video #4 Explained: Nowhera Shaikh in Video #4 is addressing her staff members, Marketing Executives, and Direct Selling Agents, advising them to address depositors as Customer.

Video #5 - Advocate Tamanna says there are no Investors

Nowhera says MPID does not apply
https://youtu.be/I90ZRgjvNf4

Video #5 Explained: Heera Group Advocate Tamanna Shaikh is trying to shift the narrative, stating that Heera Group never took deposits from people. In earlier interviews she had given to News Channels, she had mentioned depositors as "Investors." Here she says, "Don't call them Investors, there is no investment, they are customers.

In a Ponzi that returns 36% per year, investors/depositors of the last two and a half year are at loss. Those who have received their capital back, won't come out to complain. This means that investors who have invested in 2016, 2017, and 2018 have come out to complain. This also means that all those who have complained are so-called Unit Purchasers. Which is why we see Nowhera Shaikh saying that Heera Group does not have any investors. Which is why we see Adv. Tamanna Shaikh saying don't address them as Investors, they are Heera Group customers. And which is why we also see Nowhera Shaikh saying that MPID act does not apply in her case.

There are no Investors is what Heera Group's fight will eventually come to. Why isn't they saying this today? Because if they do, then it will be clear to all Investors (complainants and those waiting in belief that Nowhera will come out and pay) that Heera Group was a fraud, and this will result in more complaints in the form of FIRs and registration of claims as well as hatred for the Heera Group family as a whole.

Of note is that none of the companies that form Heera Group of Companies are listed in Stock Exchange (listed companies need permission from SEBI), they have no permission from RBI for any of the unlisted companies registered by Heera Group, and Telangana High Court order has clearly stated in 11354 of 2018 that Heera Group of Companies had no authority to collect money from public.

Ref Aritcle No. 5 in Criminal Petition No. 11354 of 2018 in the bench of Hon. Justice Shameem Akther. Link: https://drive.google.com/file/d/1NtC2NPhadiYWQwryRTdOIOuBW2pwqKdV/view?usp=sharing

And Heera Group has given it in written to ROC that they did not collect any deposits from public, and neither did they take in any foreign investment. Link: https://m.timesofindia.com/city/hyderabad/heeragold-got-huge-foreign-investment/amp_articleshow/67334102.cms#aoh=15666396218000&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s

What's the best shot they (Heera Group) got? Betray the people. Say that they have not collected any money from the public. What purpose does this article of ours serve? To prove them wrong even before they try to do so.

But wait! Did they plan it successfully? No! Nowhera Shaikh and Ismail Shaikh both have themselves addressed depositors as "Investors" & "Shareholders" when they were issuing Share Holding Certificates! Three more videos to go.