Bengaluru: Former Congress minister Roshan Baig arrested by CBI in IMA ponzi scam


Daijiworld Media Network - Bengaluru

Bengaluru, Nov 22: In a swift development after a day-long questioning, the Central Bureau of Investigation (CBI) arrested former Karnataka Congress minister Roshan Baig for his alleged involvement in the multi-crore IMA ponzi scam in the southern state, an official said on Sunday.

"Baig was arrested after questioning him in the ongoing ponzi chit fund scam investigation and a competent court sent him to judicial custody for further interrogation," CBI spokesman R K Gaur was quoted by IANS.

The former Congress minister had been disqualified by the party last year for rebelling against the state leadership.

Baig had been summoned to the CBI office on Sunday morning. According to sources, his residence was searched and he was arrested in the evening based on material evidence after day-long questioning.

Baig was later produced before a judge and remanded in judicial custody.

"Baig was taken into custody and sent to 14-day judicial custody after he was questioned during the day for his involvement in the IMA ponzi scam," a CBI source was quoted by IANS on the condition of anonymity.

Baig (67) is a 7-time legislator from the Shivajinagar assembly segment in the city and was a minister in the Congress and Janata Dal (Secular) governments.

The I-Monetary Advisory (IMA) Jewellery kingpin Mohammed Mansoor Khan alleged that he had given Rs 400 crore to Baig ahead of the state assembly elections in April-May 2018.

Baig, however, denied the charge and said Khan had falsely implicated him.

The Rs 4,000-crore ponzi chit fund scam came to light in June 2019 after hundreds of investors complained to city police that the chit fund firm stopped returning their deposits, including gold jewellery, cash and interest.

In an audio clip to then Bengaluru police commissioner Ajay Kumar Singh, Khan alleged that Baig was harassing him for more money and he fled to Dubai in June second week as his life was under threat.

Though the former Janata Dal (Secular)-Congress government had set up a special investigation team (SIT) to probe the scam, the ruling BJP government transferred the case to the CBI in August after it came to power in July 2019.

Khan was flown to Bengaluru on July 20, 2019 via New Delhi from Duabai and has been in the central jail on the city's outskirts along with about 30 accused, including seven directors of the company./

The Enforcement Directorate (ED) had also booked Khan under the Prevention of Money Laundering Act (PMLA) for allegedly transferring funds to overseas banks through the hawala route.

Baig allegedly helped Mohammed Mansoor Khan, the main accused, in fleeing the country.

In 2019, Baig had been detained by the SIT after his name cropped up in a video by Mansoor Khan, where he alleged that Baig had been extorting money from him. 

The IMA ponzi scam involves unauthorised deposits allegedly collected from a large number of depositors to the tune of Rs 4,000 crore, and the illegal activities of the IMA company had continued unabated and several thousands of investors had lost crore of rupees.

The CBI had registered four cases in connection with the said scam. CBI had earlier filed several charge sheets in the scam.

It may even be worth noting that the IMA company first came to the attention of authorities in 2015 because of the large discounts that IMA Jewels was giving on purchases of gold in its stores, but nothing was done because of a legal loophole and inaction by investors.

The Reserve Bank of India (RBI) suspected the company of being a ponzi scheme and tipped off the Revenue Department. However, the latter was unable to take action for two reasons: first, the Karnataka Protection of Interest of Depositors in Financial Establishments Act (PIDFE) only allowed action to protect depositors, and an Islamic banking company is structured so that people paying money to it are legally partners in the business and not investors making deposits, and second, no-one actually complained whilst the company was still paying them.

The I-Monetary Advisory was a company co-founded in 2006 by Mohammad Mansoor Khan and a business partner by the name of Iliyas, which they gave the name Iliyas-Mansoor Advisory.

Though this company was not successful, and was dissolved in 2008. Mansoor Khan's next company kept the same IMA initials.

Mansoor Khan encouraged ulemas and other people with influence in the Muslim community to believe that it was a continuation of the same company founded in 2006 and was a successful business of several years' standing, promising them that the company would build hospitals and schools.

Under the umbrella of the IMA Group, it quickly diversified into other businesses, including jewellery with the name IMA Jewels aka IMA Jewellers, real estate IMA Builders and Developers founded in 2017, bullion trading IMA Bullion and Trading founded in 2014, IMA Bullion in 2015, and IMA Gold, groceries Mulberry Greens, pharmacy Frontline Pharma, hospitals Frontline Multispeciality Hospital, and publishing.

 

With IANS inputs

 

  

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Comment on this article

  • k b r, Mangala Uru

    Mon, Nov 23 2020

    earlier Congress washes off its hands from Sampath raj (tamil migrant), nalapad junior and this Roshan fellow...the better for congress...

    DisAgree [2] Agree [4] Reply Report Abuse

  • Langoolacharya., Belman / Washington, DC.

    Mon, Nov 23 2020

    If CONgress drops thieves from party....nobody will remain in CONgress party....that's why they cant enforce it unfortunately....

    By the by this guy started his political career from Janata Party like CM Ibrahim....then CONgress...I believe now he is in BJPeee....looking for a safe place now...may be JDS...

    ...Tak...Takk...

    DisAgree [2] Agree Reply Report Abuse

  • Shan, Udupi

    Mon, Nov 23 2020

    I am watching.... now muslim leader arrested..... good comment's from all readers to give punishments to the guilty..... but when particular party people arrested than even their party supporters and politicians comes supports the guilty people bringing party, religion etc.

    DisAgree [10] Agree [3] Reply Report Abuse

  • myna, mysuru

    Mon, Nov 23 2020

    Good decision but delayed. Hope the poor who invested will get back their money.

    DisAgree [2] Agree [8] Reply Report Abuse

  • R.krishna, Mangalore

    Mon, Nov 23 2020

    Soon after the scandal broke and Beig's name was floating around the CBI had summoned him for interrogation many times. He ignored all the summons. However as per the then press reports he repeatedly visited
    Mr.Yediyoorappa and at one time it w as rumoured that BJP may enrol him.

    DisAgree [1] Agree [7] Reply Report Abuse

  • Bhavya Baliga, Udupi

    Mon, Nov 23 2020

    Congress itself is a liability to the nation.

    DisAgree [8] Agree [11] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Mon, Nov 23 2020

    Baig tried best to wriggle out of this scam by claiming he's innocent and flaunted minority status etc

    DisAgree [1] Agree [10] Reply Report Abuse

  • Concerned citizen, Mangaluru

    Mon, Nov 23 2020

    Freez his bank accounts and properties which is belong to poor IMA investors.

    DisAgree [2] Agree [17] Reply Report Abuse

  • Vishal, Mangalore

    Sun, Nov 22 2020

    I welcome this news and hope the accused gets condign punishment, if found guilty. This man has been a seven time legislator and a minister as well and God knows how much wealth he must have amassed over the years. The punishment should be so severe that future legislators should think ten times before trying to swindle public money.

    DisAgree [2] Agree [10] Reply Report Abuse

  • H. Almeida., Bendur/Andheri

    Sun, Nov 22 2020

    INC Netas, have become notoriously linked to fraudsters, scamsters, rioters !!!!! Veteran Congressmen Sampath Raj, and now Roshan Baig, are cooling their heels, in custody... Wonder where has IMA Kingpin Mansoor Khan, has stashed away the loot who has given him shelter, Is he holed up in India or in an alien land ????

    DisAgree [20] Agree [22] Reply Report Abuse

  • Prakash, Dubai

    Sun, Nov 22 2020

    @ Adimela. Read the whole story again to know about mansoorvkhan. In a hurry to spew venom on congress you forgot to read . All the best.

    DisAgree [8] Agree [8] Reply Report Abuse

  • Concerned citizen, Mangaluru

    Mon, Nov 23 2020

    Are you associated in mining scams, land scams with other poliltical leaders scams belong to other than INC?

    DisAgree [4] Agree [11] Reply Report Abuse

  • k b r, Mangala Uru

    Sun, Nov 22 2020

    Dishonest minority leaders big liability for Congress..... these become part of "campaign" leading to vote polarisation...

    DisAgree [8] Agree [22] Reply Report Abuse

  • SAN SHETTY, Mangaluru

    Sun, Nov 22 2020

    karma returns sooner or later😉

    DisAgree [3] Agree [47] Reply Report Abuse


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Title : Bengaluru: Former Congress minister Roshan Baig arrested by CBI in IMA ponzi scam


 
 
 
 

 
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