Bengaluru: The Karnataka High Court on Friday ordered the state government to confiscate the properties of former minister Roshan Baig, who is an accused in the IMA ponzi scam, under the provisions of the Karnataka Protection of Interest of Depositors in Financial Establishments (KPIDE) Act. Expressing its displeasure over the government's delay in the confiscation of Baig's properties, a division bench of Chief Justice Abhay Shreeniwas Oka and Justice Suraj Govindaraj granted the government two weeks to take a decision on the matter.
Earlier in March this year, the High Court had ordered the state government to confiscate Baig's properties but it failed to do so citing Covid-induced lockdown.
What is IMA ponzi scam?
The IMA scam involves unauthorised deposits raised to the tune of Rs 4,000 crore from around one lakh investors, and these funds diverted to Baig so that the firm could continue its illegal activities. Since the CBI took over this case, it has registered four cases and filed three charge sheets and three supplementary charge sheets against 33 accused including IMA Managing Director and CEO Mansoor Khan and its directors, several private persons, revenue and police officials.
Also Read: CBI files supplementary charge sheet against Roshan Baig in IMA scam
It was alleged that the said group had raised unauthorised 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 including moveable and immovable were identified and attached under the Karnataka Protection of Interest of Depositors in Financial Establishment (KPIDFE) Act by the competent authority.
Also Read: IMA fraud case: Cong's Zameer Ahmed Khan appears before SIT, Roshan Baig skips probe
Seven-time legislator Baig was a prominent Muslim face of the Congress after he joined it in 1999. He remained a Minister many times till 2018 when he severed ties with Congress. Baig was first arrested by the CBI on November 21, 2020, in connection with the and sent in 14-day judicial custody.
(With inputs from agencies)
