The Enforcement Directorate (ED) on Monday announced the arrest of a man accused of impersonation and attempting to interfere in a high-profile money laundering investigation linked to Heera Group founder Nowhera Shaik. According to the central agency, the accused had not only tried to manipulate the probe but also threatened ED officers in an effort to stall the auction of properties worth hundreds of crores attached in the case.

In an official statement, the ED identified the arrested individual as Kalyan Banerjee, who was taken into custody from Secunderabad on Saturday. Following his arrest, Banerjee was produced before a court and has been remanded to ED custody until January 23, 2026. Investigators allege that Banerjee was acting at the behest of Nowhera Shaik and her associates to derail the enforcement action against assets linked to the alleged investment fraud.

The case is connected to the ED’s long-running investigation into alleged money laundering and financial irregularities involving the Heera Group, which is accused of operating a large-scale ponzi scheme. According to the agency, the group raised nearly ₹5,978 crore from thousands of investors across the country by promising unusually high returns of up to 36 per cent per annum. Many of these investors later complained of non-payment and alleged that their funds had been siphoned off through a complex web of shell entities and benami transactions.

As part of its probe, the ED had attached properties worth ₹428 crore that it believes were acquired using proceeds of crime. These assets include land parcels, buildings, and other immovable properties located primarily in Telangana and other parts of the country. After prolonged legal proceedings, the Supreme Court granted approval for the auction of these properties, with the explicit objective of restoring at least a portion of the recovered funds to the defrauded investors.

However, the ED said that efforts to auction the attached properties were repeatedly obstructed by Nowhera Shaik through a series of legal challenges. Shaik is accused of filing multiple petitions before both the Supreme Court and the Telangana High Court in an attempt to delay or prevent the auction process. Despite these efforts, the agency has continued to move forward under judicial supervision.

The latest attempt to stall the auction came earlier this month, when Shaik filed a petition in the Telangana High Court seeking to halt the auction conducted on January 5. The high court dismissed the plea, observing that it lacked merit, and imposed an exemplary cost of ₹5 crore on Shaik. The court directed that this amount be deposited into the Prime Minister’s Relief Fund, sending a strong signal against what it viewed as repeated misuse of the judicial process to delay enforcement action.

It was in this backdrop, the ED said, that Kalyan Banerjee allegedly entered the picture. According to the agency, Banerjee was engaged by Shaik and her associates to approach ED officials and influence the investigation as well as the auction process. The ED claims that Banerjee contacted several officers through phone calls and messages, falsely projecting himself as someone with close connections to senior bureaucrats and influential political leaders.

In its statement, the ED alleged that Banerjee initially attempted to entice officers by suggesting that matters could be “managed” if the auction process was manipulated or stalled. When the officers refused to entertain any such overtures and clearly stated that all actions were being taken strictly in accordance with the law and court orders, Banerjee allegedly resorted to threats and intimidation.

“Kalyan Banerjee started messaging and calling ED officers and falsely projected himself as close to several high-ranking bureaucrats and politicians. He tried to entice the officers to manipulate the auction process, but when he was categorically told to follow due process of law, he started threatening the officers and put pressure on them to stall the auction process,” the ED statement said.

The agency further claimed that Banerjee was impersonating a consultant associated with various government departments and portraying himself as someone who could influence decision-making at the highest levels. This impersonation, the ED said, was intended to lend credibility to his claims and intimidate officers into compliance.

Following these incidents, the ED initiated an internal inquiry and gathered evidence related to Banerjee’s communications. Investigators examined call records, messages, and other digital evidence, which eventually led them to track and arrest him in Secunderabad.

According to the ED, Banerjee’s mobile phones have yielded incriminating material, including WhatsApp conversations with Nowhera Shaik and her associates. These messages, the agency claims, suggest coordination and planning aimed at interfering with the enforcement action and protecting assets that are under attachment. The digital evidence is now being analysed in detail as part of the ongoing investigation.

The arrest of Banerjee has been presented by the ED as a warning against attempts to intimidate or influence investigating officers. Senior officials emphasised that the agency would not tolerate any form of pressure, impersonation, or threat directed at its personnel, particularly in cases involving large-scale financial fraud and public interest.

The Nowhera Shaik case has been closely watched due to its scale and the number of investors allegedly affected. Shaik, who once projected herself as a successful entrepreneur and philanthropist, rose to prominence through the Heera Group, which claimed to operate on Islamic principles of finance. However, authorities allege that the business model was unsustainable and relied on funds from new investors to pay returns to earlier ones, a hallmark of a ponzi scheme.

Over the years, the case has involved multiple arrests, attachment of assets, and protracted legal battles. The ED has consistently maintained that auctioning the attached properties is crucial to ensuring that victims receive some measure of restitution, even if full recovery of their investments may not be possible.

With Banerjee now in custody, investigators are expected to question him further to determine the full extent of his role, including whether others were involved in attempts to influence or obstruct the probe. The ED is also likely to place the findings related to impersonation and threats before the court as part of its broader case.

As enforcement agencies continue their efforts to recover proceeds of crime and hold those responsible accountable, the arrest underscores the challenges faced in high-stakes financial investigations, where accused individuals may resort to unconventional and unlawful methods to delay justice. The ED has reiterated that it will pursue the case to its logical conclusion and ensure that the rule of law prevails.