Assets worth crores of Rupees of ponzi firm IMA attached
Bengaluru, Sep 25: 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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CM Siddaramaiah ready to "sacrifice power" or continue, as per Rahul's directions: Rajanna
Bengaluru (PTI): As the speculation about leadership change in Karnataka rages yet again, a senior party leader and close aide of Siddaramaiah on Tuesday said the Chief Minister was ready to "sacrifice power" or continue in the top post, based on the directions of Congress leader Rahul Gandhi.
KN Rajanna also seemed to support the idea of a change in the party leadership as well, an apparent reference to deputy CM and Karnataka Congress president D K Shivakumar, whose supporters want him to be made CM.
Urging the Congress high command to clear the confusion on the leadership issue, Rajanna, a former minister who is considered close to Siddaramaiah, warned that continued uncertainty would be detrimental for the party and governance.
He also insisted that if the chief minister is changed, there should be a "Dalit CM" in Karnataka.
The development comes amid speculations within the party and political circles about a possible decision on leadership change and cabinet reshuffle after May 4, once the results for assembly elections in four states and one union territory, along with bypolls to two assembly segments in Karnataka, are announced.
"The Chief Minister has an open mind and has said he will abide by the directions of the high command and Rahul Gandhi, and that everyone should cooperate. The CM has repeatedly reiterated that he will abide by Rahul Gandhi's directives and suggested that everyone follow the decision. All ministers have agreed to it," Rajanna said in response to a question about the CM's recent discussion with his close cabinet colleagues and MLAs.
Speaking to reporters here, he said, "power is not permanent for any politician, those who lose it will try to gain it and those who have gained it will try to maintain it. The CM's mindset is that he is ready to sacrifice power or continue in power as per Rahul Gandhi's directions. He will abide by Rahul Gandhi's decision."
When asked whether supporters of Siddaramaiah demanded that he continue as CM, and if he steps down, that an AHINDA leader should take over, the MLA said the matter is for the high command to decide.
"We have told the high command what we had to. Ultimately it is left to high command and Rahul Gandhi," he said.
AHINDA (Kannada acronym for minorities, backward classes, and Dalits) is considered as the strong support base of Siddaramaiah and also the Congress party.
When asked about his past statement that there should be a Dalit CM after Siddaramaiah, Rajanna said, "What's wrong with it. I am committed to the statement that there should be a Dalit CM."
MLAs and leaders who want Shivakumar to be elevated have recently claimed they expect some "sweet news" by May 15, which is their leader's birthday.
When asked whether the party president should also be changed, the former minister said that everything has to change.
"If the ministers have to change, why shouldn't the party president. Everything will be decided by high command," he said.
Shivakumar is the state Congress President and has completed six years in the post.
For the government to function more actively towards the welfare of the people it is important that the high command clears the existing confusion in the Congress party at the earliest, Rajanna said, adding, the ministers have gone to discuss the same with the leadership.
"I too urge that the high command should not allow the confusion to continue; as long as the confusion continues, it is detrimental for the party and governance. I will also go to Delhi after May 4," he said.
"The high command is at it (resolving the confusion), but because of elections, the leaders are busy. The matter cannot be decided hastily, it must be decided with a clear state of mind, as it involves the future of the people of Karnataka and the party," he said, expressing confidence that the party will take appropriate decisions after examining all aspects.
PWD Minister Satish Jarkiholi on Monday met Congress President Mallikarjun Kharge and General Secretary (in charge of Karnataka) Randeep Surjewala in New Delhi and requested them to address the speculation regarding the change of leadership in the state.
Subsequently Social Welfare Minister H C Mahadevappa too met the party leadership in Delhi.
Both Jarkiholi and Mahadevappa are considered close to Siddaramaiah.
Regarding the demand for cabinet reshuffle, Rajanna said there is an expectation within both the party and the public that the administration should be sensitised more, and there is nothing wrong in new people getting opportunities.
Responding to a question, Rajanna said, there is a feeling among AHINDA communities that their expectations from the current government have not been fulfilled. "I too agree with it," he said.
Rajanna, who recently alleged that the Chief Minister is "helpless" and under some "compulsion," reiterated his statement by saying, "compare Siddaramaiah as CM during 2013-18 and 2023 to now, there is a huge difference, people are saying it."
The leadership issue is being hotly debated as Shivakumar's supporters have been demanding his elevation since late 2025, in lines with a rumoured power-sharing agreement involving Siddaramaiah when the party won the 2023 Assembly elections.
