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Assets Worth Crores of Rupees Belonging to IMA Attached in Ponzi Scam

A CID probe has also been ordered into a similar fraudulent scam in Bengaluru Rural district by some companies and deputy commissioners have been asked to submit a report to the Revenue department on such 'dubious companies' in three months.


Updated:September 25, 2019, 7:45 PM IST
Assets Worth Crores of Rupees Belonging to IMA Attached in Ponzi Scam
Representative photo. (Image: Reuters)

Bengaluru: Karnataka government on Wednesday said, it has attached assets worth crores of Rupees belonging to 'I Monetary Advisory' (IMA) group that is involved in a multi-crore ponzi scam, to protect the interest of depositors.

A CID probe has also been ordered into a similar fraudulent investment scam in Bengaluru Rural district by some companies and Deputy Commissioners of all districts have been asked to submit a report to the Revenue department on such "dubious companies" in three months.

"The IMA case has taken many major turns. The Revenue Department has now ordered attachment of the properties related to IMA and its group entities," Revenue Minister R Ashoka told reporters here.

He said "the government was convinced that IMA has made people believe in their business and collected money from them as investment and then did not pay them capital and profit share amount and thereby indulged in fraud.

So, in order to protect the interests of the investors, I have approved the attachment of movable and immovable properties of the company by the Revenue Department," he said.

Among the properties attached by the government were 17 in Bengaluru with a market value of Rs 21.73 crore, Demand Drafts worth Rs 8.86 crore, gold and silver ornaments and materials worth Rs 91.57 lakh and 5,880 fake gold biscuits weighing 303.07 kg.

An amount of Rs 2.85 crore cash was also seized. The government had recently entrusted the CBI to probe the IMA scam, in which over one lakh people, mostly Muslims, were were duped.

IMA director Mohammed Mansoor Khan had allegedly duped investors, promising high returns, saying he was promoting Islamic way of investment.

Many touts and some religious preachers were also among those who lured people to invest in the IMA.

The case came to light a couple of months ago when Khan fled the country, leaving behind a video message saying he would commit suicide because of "corruption in the state and central governments".

He was later brought back to India from Dubai and is currently in judicial custody.

The IMA properties were attached under relevant sections of the 'Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 (Karnataka Act 30 of 2005).

Ashoka said such scams were growing and the government would take 'merciless action' to put an end to 'mafia' like fake investment firms. Naming five companies involved in such fraudulent activities in Bengaluru Rural Limits, he said they had collected Rs two lakh to Rs 2.5 lakh from each investor.

The firms had promised returns of between Rs 10,000 to 25,000 each month on renting out cabs purchased in the name of investors.

As per preliminary information, about 2,000 people had invested about Rs 40 crore to 60 crore in the firms, he said.

Noting that the cars were not registered in the names of investors, Ashoka said....'the model of business itself looks fraudulent, aimed at duping investors and is like a blade company.

He said the police and Deputy Commissioner there have conducted an inquiry and informed them these are bogus firms.

"To stop such mafia and to protect investors, I have ordered a CID probe into the case and asked police to arrest those behind it and get the money back to investors," he said.

Deputy Commissioners of all districts have also been directed to send a report to the Principal Secretary, Revenue department, on such companies in three months, he said.

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