The firm allegedly launched several investment schemes promising high returns and siphoned off the money.
The Economic Offences Wing (EOW) of Mumbai police yesterday arrested Nowhera Shaikh, managing director of Heera Group, for allegedly duping investors of around Rs 300 crore.
The companies in the Heera group had floated several investment schemes claiming that they were compliant with Islamic principles of finance, police said.
Ms Shaikh was first arrested by Hyderabad police on October 17 after several investors there filed complaints of cheating against her group.
After she was released on bail by a court, a team of Mumbai EOW took her in custody, a police official said in Mumbai.
She was produced before a Mumbai court yesterday evening which remanded her in police custody till November 3, he said.
Ms Shaikh also dabbled in politics and had floated an outfit named 'All India Mahila Empowerment Party'.
On October 23, a case was registered against Ms Shaikh and officials of Heera Gold Exim Ltd, Heera Retail Pvt Ltd, Heera Textiles and Heera Foodex in Mumbai, the official said.
Ms Shaikh and others allegedly launched several investment schemes promising returns as high as 2.8 to 3.2 per cent per month, and siphoned off the money, he said.
They mostly targeted Muslim investors, claiming that their schemes offered 'profit' on investment and not interest which is prohibited in Islam, the official said.
The Heera group has over 20 companies and has its headquarters in Hyderabad, he said.
The companies had operations in Dubai, Sharjah, Saudi Arabia, Ghana and were involved in businesses such as sale and purchase of gold, garments, electronics and food items.
The group first floated an investment scheme specially designed for Muslims in 2008, the official said.
The EOW also raided the group's offices in Bhendi Bazar area of south Mumbai and in Mira Road, the official said, adding that further probe was on.