IMA Ponzi scam: ED raids ex-Karnataka minister, Congress MLA's premises
The Enforcement Directorate (ED) on Thursday conducted searches against former Karnataka minister R Roshan Baig and a Congress MLA in connection with a money-laundering investigation into the alleged Rs. 4,000 crore IMA Ponzi scam, officials said. They said multiple premises of Baig and his associates are being raided by the agency under the provisions of the Prevention of Money Laundering Act (PMLA).
Searches were also conducted in some locations in Mumbai
Two of Baig's premises in Shivajinagar of Bengaluru and that of Congress MLA from Bengaluru's Chamrajpet, BZ Zameer Ahmed Khan, and a travel company linked to him are being searched. Searches were also conducted in some locations in Mumbai.
Baig was earlier arrested by CBI; suspended from Congress
The Congress MLA is stated to have had a purported property transaction with then MD of IMA Group, Mansoor Khan. This transaction was even declared by the Congress MLA in his election affidavit. Baig, earlier arrested by the Central Bureau of Investigation (CBI) in this case, was suspended from Congress after the alleged scam came to light. Baig is out on bail at present.
CBI had earlier filed charge sheet naming Baig, Mansoor
The Enforcement Directorate's action is linked to its probe in the Rs. 4000 crore I-Monetary Advisor (IMA) alleged Ponzi scam case, taking cognizance of a CBI FIR and a charge sheet. The CBI, in April, had filed a charge sheet before a special CBI court in Bengaluru and had named Baig, Mansoor Khan, IMA Group, Baig's company Daanish Publications, and others.
Baig was accused of spending funds money for election expenditure
It was alleged that Baig had received several crores of rupees from IMA funds for election expenditure. "It was further alleged that the accused was also utilizing the said funds for day-to-day expenditure, including salaries of employees of his firm... The accused has spent the funds for various social and cultural activities in his constituency to increase his popularity," a CBI spokesperson had said.
IMA group collected Rs. 4,000cr in name of providing returns
The alleged IMA scam pertains to over Rs. 4,000 crore collected by IMA Group from over a lakh gullible investors in the name of providing attractive returns on investment following Islamic ways.
CBI had filed four cases; multiple charge sheets
The CBI has alleged the money was diverted to Baig, a minister in the erstwhile Congress government led by Siddaramaiah, so that the IMA Group could continue its illegal activities, CBI officials had said. The CBI had registered four cases in connection with the scam and has filed multiple charge sheets against 33 accused, including Mansoor, company directors, and several revenue and police officials.
Group was alleged of raising unauthorized deposits, cheating the public
It was alleged that the said IMA Group had raised unauthorized deposits and cheated the public by failing to repay the principal and as well as the promised returns. These funds were allegedly diverted for acquiring properties, paying bribe amounts, etc. Several properties were identified and attached under KPIDFE (Karnataka Protection of Interest of Depositors in Financial Establishments) Act, 2004, by the competent authority.